Cryptocurrencies have been in the ‘bear market’ for a while and it seems like it is far from performing as desired. Undoubtedly, these negative developments Ethereum also had a serious impact on Cryptocurrencies, which are quite far from the highs of November, made their investors more conscious while upsetting their investors. Although many investors have started to explore new assets after the declines, some names in the crypto world believe that the biggest altcoin is still one of the most reliable ports. Here are the top three reasons to buy Ethereum today.
What is Ethereum?
The project, which started with “proof of work (PoW)”, which is essentially the same working principle as Bitcoin, is getting ready to move to “proof of stake (PoS)” consensus these days. Unlike Bitcoin, Ethereum includes a virtual machine that complements Turing. Smart contracts, also called decentralized applications (dApps), are created using this machine. These programs are recorded as transactions on the blockchain. The functions of these applications are then made available to users through transactions. This allows program requirements to be adjusted based on logic and events.
Top Reason to Buy: Cheap Price
Koinfinans.com As we have previously reported, while this content is being prepared,Ethereum price It was around $1200. The altcoin, which went on a price discovery about two weeks ago from this moment when it was traded at this price level, had a difficult time identifying an important support level and dropped to $ 875. However, it did not waste much time at this price and managed to bounce back to the psychological support level of $1000.
There is a lot of relief these days that crypto prices have reached support areas and are poised to push higher. ETH volume indicators show that buying pressure is rising and growing. It is also supported by the moving average, where the precise, short-term exponential moving averages shift. With bullish techniques backed by solid fundamentals, Ethereum is well placed for more profits in the short to medium term. The current price action is at a level that reflects this reality.
While most people expect the Ethereum price to rise in the long term, short-term investors observe more comparable prices. A growth target remains in the long term as well as in the short term, as prices touch an important buying zone.
It has already been suggested by some analysts that the price will rise to about $ 2,300 in the next few days, but we would like to remind you that this level can still be considered quite high. After breaking $2,300, the next resistance is set at $2500. After that, it is still possible for prices to rally lower, but it will be more of an adjustment type and not an aspect of the bearish move. From there, they will all rely on the crypto market as a whole. If things improve and consumers re-enter the market, touching $3,000 would be a pretty realistic scenario.
Second Reason to Buy: Ethereum The Merge Update
The Ethereum blockchain is currently preparing to migrate from a proof-of-work (PoW) protocol to a proof-of-stake (PoS) protocol. Basically this will push the blockchain to run faster and also have cheap transaction fees for users. This upcoming update could be huge for Ethereum as it will allow it to scale quickly and provide more competitive advantages. Not only will it outperform Bitcoin (which still uses a PoW protocol), but it will also be more comfortable to contend with promising cryptocurrencies like Cardano and Solana, which already use PoS.
The rising gas price, which has been a challenge in the past, will not be available after the full transition, as there will be no miners in the proof-of-stake. Second, the change will make Ethereum more environmentally friendly, a factor that could attract environmentally conscious investors, especially institutional ones.
Despite a giant like Morgan Stanley among those who oppose this view, the crypto community may already be getting excited.
Third Reason to Buy: Strong Community
Ethereum works on a peer-to-peer basis and does not need any middlemen. The vision is to provide greater security and minimal fraud, scam or other hacking as a result. A large number of developers are working on Ethereum every month. It is known that around 216 developers work on the platform monthly. The advantages of Ethereum are that it is a reliable network that has functioned for years and has been discovered through numerous trading indicators. It has a large and committed global community and the most comprehensive ecosystem in blockchain and cryptocurrency.
You can follow the current price action here.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.