Despite a massive rally earlier in 2021, cryptocurrency prices have plunged yet again in the May 19 market crash. Ethereum, the second-largest cryptocurrency, did not come through the drop unscathed. ETH had a price drop of over 55% in May. So, is it the right time to buy Ethereum? The token is slowly rebounding, and experts believe that buying Ethereum at $2k is the best opportunity to gain good profit.
Arguably, Ethereum is not merely a store of value like Bitcoin. It is also an advanced computing platform that supports decentralized applications (dApps) and smart contracts. Bradley Kam, chief executive officer of blockchain domain provider, Unstoppable Domains, said, "It's more than just a coin. It's a whole ecosystem that allows other applications to be built.”
However, Ethereum has successfully outperformed in the past few weeks with its latest network upgrades. But currently, the token is at a resistance level of almost $2000 to $2500, certainly long past its all-time high of $4000. But, buying Ethereum now is a good decision as the token is gaining the attention of several institutions and investors in the crypto space at the current price.
So, have plans to buy ETH? Let us explore why the token is considered a good buy at $2k and the never-ending opportunities it opens for crypto enthusiasts.
Ethereum’s Boom and Bust Cycle
Ethereum began 2021 at $737 and quickly surged to touch almost $2000 in February. Further, the increasing institutional interest initiated a bull run, and ETH soared to a record high of $4362 on May 12.
Later, as a series of tweets from Tesla CEO Elon Musk and the China market crackdown rattled the crypto sector, ETH’s value plummeted to almost $1952 on May 19. ETH remained volatile even in the first half of June, fluctuating between $2300 and $2800. Right before rebounding to $2000, the token reached a low of $1731. As of writing, the price of ETH has again risen to $2,030.96.
Should You Buy ETH AT $2k?
The increasing popularity of DeFi, Dapps, and NFT is a significant reason to buy Ethereum. The blockchain not only hosts Ether but also has other applications. Developers can seamlessly create smart contracts on the blockchain network, allowing people to safely transfer money, property, or any other items of value. By doing so, it eliminates the purpose of a middleman.
With its advanced technology, the platform is also the foundation for non-fungible tokens and decentralized finance, giving it an advantage outside the crypto community.
Finally, yet another reason to buy Ethereum at $2k is the initiation of its long-awaited update. As announced by the team, Ethereum 2.0, the latest update to the network, will be released later this year. The update will make Ethereum more energy efficient by reducing its energy consumption by around 99.95%. The switch from Proof-of-Work to Proof-of-Stake mechanism will make the token environmentally friendly, fueling its price to new heights. Moreover, as more investors and regulators show concern over the sustainable nature of cryptocurrencies, this move could give ETH a competitive advantage over others.
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A Buying Opportunity For Ethereum
Ethereum’s many uses can make it an ideal investment option for investors. Its most recent price plunge put ETH at $2k. This could be a good buying opportunity for investors due to several reasons.
The booming NFT market is also a vital fuel behind ETH price growth this year. As NFTs and almost all DeFi applications run on Ethereum, they require ETH as gas to pay for transactions. Therefore, more users will buy ETH driving up the token’s price to new heights.
Finally, thanks to Ethereum’s custom programming language and a dedicated team of developers, the token is poised to be a long-time investment option. Yet another factor that allures investors to buy Ethereum is its high liquidity. With numerous established trading platforms, exchanges, and online brokerages worldwide, trading and buying Ethereum for cash or any other asset is seamless and faster with low fees. You can buy Ethereum from top platforms like Coinbase, Kraken, Bitstamp, Gemini, Binance, and Bitfinex.
Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
Recent Upgrades And The Launch of ETH 2.0
In April 2021, the Berlin Upgrade implemented several Ethereum Improvement Proposals (EIPs). It went live at block 12,244,000 on 15 April 2021. The upgrade has made several improvements to the network. It optimized contracts to address the transactional efficiencies that result in high transaction fees, updated how the Ethereum Virtual Machine (EVM) reads code, and made numerous changes to prevent distributed-denial-of-service (DDOS) attacks.
These enhancements made the Ethereum network highly efficient, boosting its adoption rates. And that is why you should buy Ethereum now while the price is low.
Moreover, with the launch of ETH 2.0, the network will become more scalable, faster, secure, and energy-efficient. It will also be able to perform a wide rollout of smart contracts execution, adding more reasons to its surmountable growth in the coming years.
Experts like Justin d'Anethan, sales manager at the cryptocurrency exchange Equos, said that changes to the Ethereum network should "not only make the blockchain more eco-friendly" by making transactions more efficient, "but should also make it more scalable."
Looking To Buy Ethereum At $2k? Here Is What Experts Have To Say
However, several crypto experts think that the recent price plunge is an excellent opportunity to buy ETH. According to experts, the best way to ensure good returns in the future is to buy Ethereum at $2k. With the launch of ETH 2.0, the growth of the token would be unstoppable.
Simon Peters, the crypto-asset analyst at eToro, commented on Ethereum’s Berlin hard fork. He said, "Post the network upgrade, Ethereum, in particular, is proving its use-case, and with developers piling on to the platform, it is little wonder it is gaining so much traction with investors.”
According to Tegan Kline, the co-founder of blockchain software company Edge & Node, “Ethereum will likely exceed Bitcoin at some point in the future, as Ethereum will be superior when it comes to innovation and developer interest.”
Yet another bullish forecast came from Sarah Bergstrand, the Bitbull Capital COO, who said that the price of Ether would hit $100,000 by 2025. She added, "We are likely to see major upgrades to the Ethereum network this year, and those can be expected to push the price higher."
Experts from Digitalcoin remain bullish about ETH, predicting that the price will average $2,707 in 2021 and rise to $3,382 in 2022. At the same time, the Economic Forecast Agency thinks that ETH is a potential long-term investment. It estimates the price to peak at $7072 in December 2022.
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The Bottomline
In short, the overwhelming performance of the token has attracted traditional and institutional investors to buy ETH even amidst the market crash. Moreover, the upcoming transition will further boost the growth of Ethereum as the energy consumption of cryptocurrency mining has made big waves in the market recently. It will be ETH’s first step to becoming a sustainable coin, unlike Bitcoin. Therefore, Considering all its use cases and real-world applications, it is undoubtedly an excellent decision to buy Ethereum at $2k to reap good returns in the future.
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Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
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