One of the most well-known and widely used cryptocurrencies in the world, Ethereum has seen a big surge in its market price in recent years. However, the price is now several times lower compared to the all-time maximum, and it’s still unclear whether ETH will be able to recover from this crash. Many investors already flee from the project, selling their tokens. But are they actually right to hurry? We’re going to analyze the market and find out whether you should sell your ETH right now or hold it.
How Ethereum works
Before we can talk about the project’s future, we should clearly understand the basics of how it really works. Basically, Ethereum is a blockchain-based platform mostly known for its decentralized nature, security, scalability, and native support for smart contracts which are self-executing fragments of code allowing users to build their own applications. However, many investors only care about the Ethereum native cryptocurrency called Ether, or simply ETH.
Ether is the second most popular cryptocurrency in the world by market cap, outrun only by Bitcoin. It is used to fuel the network by providing rewards to the users validating transactions, but it has found a lot of other uses since the launch of the blockchain, and now it’s considered a decent investment. But there are people who doubt the future of the token and point at problems that can soon end it, so you have every reason to ask yourself: should I sell my Ethereum tokens right now?
Reasons to sell
Actually, there are several good reasons to dump ETH. The US government raises interest rates, and the entire crypto market seems to be struggling without cheap money. There are also many inherent, technical problems within the Ethereum blockchain. While Ethereum 2.0 is designed to address some of them, there are still tokens that have effectively solved these problems. But all of them, Ethereum included, also tend to have extreme volatility, and that’s not good for stable investments.
Reasons to hold
However, there are also reasons to believe in ETH. Ethereum 2.0 is going to make the network much faster and safer, pushing the price back up. The price has already stopped falling and now seems to start growing, even if a little bit. The blockchain continues to get all kinds of new applications, and it seems to have a great long-term potential, even if things aren’t going well now.
