1664816479867 ca955746 70a4 4099 af6f 3fbb7dc1dced xhc2gg Should you buy Ethereum in October 2022

Should you buy Ethereum in October 2022

Ethereum price has been in a consolidation phase in the past few days as the excitement about the recent Merge event faded. ETH was trading at $1,316 on Monday, which was much lower than August’s high of over $2,000. It has crashed by more than 60% in 2022.

Ethereum is in consolidation

ETH price has been in a tight range as investors wait for the next catalyst. The coin remains close to its lowest level since July 17th of this year. Notably, this price action mirror’s that of Bitcoin, which has remained at $20,000 in the past few weeks. 

Ethereum has also consolidated at a time when American shares have been in freefall recently. The four main indices – Dow Jones, S&P 500, Nasdaq 100, and Russell 2000 – all declined by more than 10% in September while the US dollar index surged to the highest level in more than two decades.

Historically, Ethereum tends to have an inverse relationship with the US dollar. It also often tracks the performance of American indices, which are often seen as risk assets. 

Ethereum consolidated as investors focused on the most recent merge event. This was an event that transitioned the network from a proof-of-work (PoW) to a proof-of-stake (PoS) platform. As a result, it has become a more environmentally-friendly platform.

A key issue is on what the Securities Exchange Commission (SEC) will do. In his recent statements, Gary Gensler warned that Ethereum was transitioning into a security by letting people stake their coins for rewards. As such, it is unclear whether the agency will pursue the matter.

Meanwhile, Ethereum price remained under pressure as investors assess the deteriorating ecosystem. For example, recent data shows that NFT volume has crashed by 97% from its peak in January. Similarly, the volume of funds locked in Ethereum has crashed from over $150 billion to about $50 billion.

Ethereum price prediction

The daily chart shows that ETH/USD price has been in a consolidation phase and is trading at $1,317 where it has been in the past few days. It has dropped below the 25-day and 50-day moving averages while the Relative Strength Index (RSI) is hovering above the oversold level. 

Ethereum seems like it has formed a bearish flag pattern. Therefore, the coin will likely have a bearish breakout in the next few days as sellers target the next key support level at $1,000. As such, you should wait for a new bullish trend to form before you buy.

How to buy Ethereum

eToro

eToro is a global social investment brokerage company which offers over 75 cryptocurrencies to invest in.

It offers crypto trading commission-free and users on the platform have the option to manually invest or socially invest.

eToro even has a unique CopyTrader system which allows users to automatically copy the trades of popular investors.


Buy ETH with eToro today


OKX

OKX is a top cryptocurrency exchange which offers over 140 cryptocurrencies to invest in.

OKX takes customer security very seriously, they store almost all of their clients’ funds in cold storage, and the exchange is yet to be hacked.

On top of this, the exchange offers very low fees and customers can even use their crypto as collateral for loans on the platform.


Buy ETH with OKX today


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