Ethereum’s unending rally has come to an end in a haphazard manner. On 16th May, the price of Ethereum fell by 14% after rumors of Tesla having sold its Bitcoin surfaced. Note that the market was already in a very sensitive position after Musk announced that Tesla would stop accepting Bitcoin. And every bad news is having an exponential effect on the market. I think it’s about time that recovery will begin, and this is probably one of the best buying opportunities right now.
Elon’s actions
The entire crypto market was taken by surprise when Elon Musk announced that Tesla would stop accepting Bitcoin. Just within a few minutes of the news, the market fell by 5% and continued to go down as strings of bad news flowed. A wrong title saying that Binance will also be investigated pushed down the prices. But the markets started to recover on 16th May, but rumors of Tesla selling its BTC holdings hurt the market even harder.
The problem is not that Elon has stopped accepting Bitcoin. The thing is, he is not dumb that he didn’t think it through before adding the payment option to Tesla. Like most people, I literally have no clue what is going on in his mind. But I do hope he comes back to his senses and actually clears the negative air in the market. His recent failure to push the prices of Dogecoin to $1 could also be the reason for this.
Should you buy Ethereum now?
The cryptocurrency is nearly 25% below its all-time high and does seem to be a good buy to me. Ethereum has a much smaller carbon footprint as compared to Bitcoin and but it is sure that it seems that the new upgrades will improve it even further. As of now, ETH is also based on a proof of work system like Bitcoin. But with ETH 2.0, it will move to a proof of stake system and will have validators instead of miners.
The future of Ethereum is also bright if we see it from an application standpoint of view. From smart contracts to NFTs, it has a lot of uses that make it a really practical investment. Do note that it is still not very clear how the market will respond to the new upgrades as the rollout is complete. But it is sure that it will catch on with the rally sooner or later. Do your own research before investing, as I am not an investment advisor.
What are your thoughts on Ethereum’s dip, and do you think this is a good buying opportunity? Let us know in the comments below. Also, if you found our content informative, do like it and share it with your friends.
Also Read: Rumours of Tesla selling Bitcoin pushes price even lower
