Ethereum: Buy the Dip?
In mid-July, Ethereum (CRYPTO: ETH) briefly broke through the $2,000 price level and crypto investors began to anticipate another bull market rally heading into 2024. But since then, Ethereum seems to have run out of momentum, and is now trading below $1,600. Down 20% from its summer highs, Ethereum is now firmly in "dip" territory.
While a "buy the dip" trading strategy has worked in the past for long-term crypto investors, there are a number of worrisome signs that suggest it might be different this time around. If you are thinking about investing in Ethereum, there are three key factors to consider.
Of primary concern is that overall activity on the Ethereum blockchain network appears to be declining. This wasn't supposed to happen, not after The Merge. The conventional thinking back in 2022 was that The Merge would set the stage for the next big round of growth at Ethereum. Thus, any slowdown in growth this year is a potential reason for concern.
Source Fool.com
