I vividly remember buying ETH back in 2017: excited, nervous, staring at the charts every second. The addiction was real.
Fast forward to today, and although the thrill is still there, I have learned to take more of a measured approach, which is why I don't hit the panic button although some bearish signs are around.
Ouch, that rejection at $2.8K stings.
I wanted us to break through that resistance level. But let's get real, nothing goes up in a straight line forever. Pullbacks are healthy, even if they're not fun to live through.
But what concerns me is the deeper market sentiment
Debts podding through crises, funding rates through the floor in the futures market. I reckon it's the people who are so far highly pessimistic out there who can remember back to the crypto winter of 2018. Dire days, indeed. But here's the thing, sentiment can flip on a dime in this space.
I've got a friend who is certain that we go straight for 2.1K, and he has already liquidated half of his position.
Me? Not so sure.
The technicals certainly don't look great, at all. That Death Cross on the daily chart is quite ominous. But I have seen way too many "sure things" in crypto not turn out to be sure.
I am sticking with my DCA strategy versus trying to time the market.
A little bit each week, regardless of price. It's not very sexy, but it has helped me sleep better at night. And let's be honest, in the long run, does it matter if you bought at $2.8K or $2.1K if ETH hits $10K someday?
That being said, I am not blind to the risks, at best, the macro is shaky, regulation is looming, and let's not forget about all the Layer 2 solutions nibbling at Ethereum's heels. The competition is fierce, and for ETH to stay ahead of the pack, it needs to continue to make innovations.
But hey, I am still bullish on the long-term prospects of Ethereum. The ecosystem is huge, whether it's DeFi, NFTs, or DAOs, so much is being built on this platform. And with the shift to Proof of Stake, I can say for a fact that energy FUD is going to slowly dissipate.
So yeah, we may be in for some more pain in the short term.
$2.1K? It's possible. Lower? Can't rule it out. But I'm not losing sleep over it. I've been through worse, and I bet many of you have too.
My advice?
The usual
Don't invest more than you can afford to lose. Have a plan and stick to it. Most importantly, zoom out: in a few years, this will be a blip on the radar.