Ethereum’s price dropped back below $4,000 Wednesday morning after staying above that threshold most of the day Tuesday.
Despite the drop Wednesday morning, Ethereum is still above where it was to start the week, when it went below $3,800 Monday morning.
After entering the month just shy of $4,800, Ethereum has mostly hovered around or below $4,000 — close to where it was in October before a November rise that saw it hit a new all-time high over $4,850 on Nov. 10.
The volatility and slumping prices comes as the U.S. navigates new economic uncertainty over the Omicron COVID-19 variant, new comments by Federal Reserve Chairman Jerome Powell about the health of the economy, and ongoing comments by U.S. policymakers like SEC Chairman Gary Gensler about cryptocurrency regulation.
Like, Ethereum, Bitcoin has stalled this month as well after its own strong November; Bitcoin set a new all-time high of its own when it went over $68,000 on Nov. 10. The future of cryptocurrency is sure to include plenty more volatility in the price of Bitcoin and Ethereum, and experts’ advice for investors remains the same.
What Should Ethereum Investors Do?
As with any long-term investment, experts advise to ignore the ups and downs. The latest high price doesn’t mean Ethereum’s volatility has gone away.
“The real question is, owning these coins, are they going to continue to experience compound, exponential growth? Nothing in the fundamentals of cryptocurrency tells me that answer is yes,” says Jeremy Schnieder, the investing expert behind Personal Finance Club.
Because there’s no guarantee that any crypto’s value will increase, experts advise to never invest more than 5% of your portfolio in cryptocurrency. Never invest at the risk of not meeting other financial goals like paying off high-interest debt or saving for retirement.
If you’ve met all of those benchmarks, the best thing you can do is ignore the hype around new record highs or lows. Like with traditional, long-term investing, the best thing you can do is “set it and forget it,” Humphrey Yang, the personal finance expert behind Humphrey Talks, previously told NextAdvisor.
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