All things being equal, I look at this as a nice buying opportunity.
Ethereum is back below the $4000 level after selling off somewhat hard on Tuesday. As I record this, we are sitting just above the $3800 level, but we have seen this happen a couple of times as of late. Quite frankly, Ethereum 2.0 coming down the road should help lift the value of Ethereum as well, but in the meantime, it seems like we are just dancing around the $4000 level without any real directionality. As for myself, I am a longer-term holder of Ethereum, so I do not necessarily pay much attention to this, but I do recognize that those who are true believers are probably getting frustrated at this point.
Nonetheless, with the lower gas fees and quicker transactions coming in the next few months, it is very likely that Ethereum is setting up for a huge 2022. It is worth noting that most Ethereum holders are just that: they are holders. If we turn around and take out the $4100 level, then we could go looking to the $4500 again, but I think we need some type of catalyst. Right now, we are just too close to the holidays to think that we are suddenly going to see a massive move.
That being the case, I think a simple amount of patience is probably going to be needed. If you do not have Ethereum in your wallet right now, I do not know that I would necessarily jump in and buy a ton of it, but buying little bits and pieces as it works in your favor could be a way to go. At this point, I am probably going to buy a little bit of Ethereum just add to my pile, but I also am not buying it with the thought of it going higher in the next day or two either. If you are a trader, then you may want to look a little closer to $3500, where we have seen quite a bit of support previously. Either way, this is a market that I do not short, nor do I get involved in options. The great thing about crypto is that you do not really need to be bothered with leverage, which helps with some of the inherent dangers in a volatile market like Ethereum or Bitcoin. All things being equal, I look at this is as nice buying opportunity.
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