Why Now is a Great Time to Buy Ethereum

Why Now is a Great Time to Buy Ethereum

What has more of an impact on the price of an investment? The fundamentals backing it or investor expectations?

Over the long term (multiple years), fundamentals trump all. But over the short to intermediate term (days, weeks and months), investor expectations drive much of the price action.

And right now, investor sentiment behind Ethereum is pretty bad.

Earlier this year, hopes ran high that the Securities and Exchange Commission (SEC) would be quick to approve an Ethereum (ETH) exchange-traded fund (ETF) by May 23.

In anticipation of approval, we saw the price of ETH leap higher from its January low of $2,100 to as high as $4,100 on March 11.

(ETFs are investment funds that trade on stock exchanges. They provide investors with an easy way to invest in an index, sector, commodity, or other asset.)

Since then, much has changed on the ETF front.

The SEC is rumored to be pushing to classify Ethereum as a security. Noted bitcoin investor Michael Saylor, the founder of software firm MicroStrategy, has publicly stated he views Ethereum as a security. He went on to say that the government would never approve an Ethereum ETF.

On top of that, we’ve seen a 20% sell-off in bitcoin, which invariably brings down prices across the entire crypto ecosystem.

That’s why Ethereum is currently trading at $2,900 – down almost 30% off its March highs.

So Why is Now a Great Time to Buy Ethereum?