Ethereum (ETH) has started the New Year with positive momentum. It is the only crypto recording double digit gains today, adding to its momentum that it had built in the last 3 weeks of December. It has also started the year by retaking its spot as the 2nd largest cryptocurrency, after losing that spot to XRP (XRP) about two months ago. However, a look at crypto history in 2018, it is clear that such pumps are not uncommon, and more often than not have been followed by massive dumps. This then leads to the question, does it make sense to FOMO into Ethereum (ETH) at its current price? The answer to this is YES.
Though no one can tell with certainty the direction the market is likely to take, a number of factors support a continuation of the momentum that Ethereum (ETH) built in the last quarter of 2018. One of these factors is that Ethereum (ETH) is finally addressing the scalability problem that plagued it since the unprecedented increase in usage in 2017.
For instance, towards the end of 2018, Raiden red eyes was released on the Ethereum mainnet. It is expected to significantly impact on Ethereum scaling, an issue that had become the bashing points for Ethereum in 2018.
Other solutions are coming up too, and will all ultimately led to Ethereum 2.0. Ethereum 2.0 will be a highly scalable and use-ready world computer. It will be a use-ready world computer where anyone can create highly efficient, industry level, and scalable applications in a trustless and censorship resistant environment. This is powerful and could lead to a sustained Bull Run for Ethereum (ETH) all through 2019 and for years to come.
Secondly, Ethereum (ETH) like all other cryptos is trading at a massive discount. From its all-time highs, Ethereum (ETH) is trading at a loss of over 80%. This makes any downside risk minimal. Even without all the developments that have taken place in the last week of 2018, Ethereum (ETH) was still heavily undervalued. As such, purchasing Ethereum (ETH) at its current price is a low risk decision, especially now that solutions to its scalability problems are becoming a reality.
Buying into Ethereum at current prices, is quite similar to shorting it at its peak in December 2017. The risks are relatively low. Unless it is going to zero, which is highly unlikely, Ethereum (ETH) is unlikely to drop below $70, even if the bearish momentum continues. This price level could act as a consolidation level before the next Bull Run. This makes its current price a good level to get a good average for the long-haul.
On top of that, Ethereum is looking to transition to POS, and staking will start at 32 Ether. This could see lots of people rushing to accumulate on Ethereum (ETH) and further push up its value.
Clearly, there are lots of reasons to FOMO into Ether at current prices. It could end up turning into a sustained Bull Run, and see Ethereum (ETH) top $2000 or more, by the end of the year.