The coin's recent strength is undeniable, but the fact that it might not last forever demands at least some caution from investors.
The coin's recent strength is undeniable, but the fact that it might not last forever demands at least some caution from investors.
One great quarter doesn't justify going overboard on Ethereum (ETH -0.01%) purchases, though owning some is a great idea, and adding a little right now still makes a lot of sense given what could be on the way. The coin surged by 66% in the third quarter, marking its best quarter since its wild run in 2021, while the S&P 500 gained just 2% amid considerable global uncertainty.
Bullish investors are already sounding off in anticipation of the uptrend continuing. Tom Lee, chairman of BitMine Immersion Technologies, says Ethereum is "dwarfing" other major assets. At least for Q3, he's right. Let's take a closer look at the case for loading up and discuss why it's best to keep overly bullish inclinations in check for the time being.
It's still down 37% over five years
One compelling reason not to bet the farm on Ethereum is that it still trades below its level five years ago.
Ether is down by 37% over the last five years. An index fund tracking the S&P 500 would have returned 85% with dividends reinvested. Even with the index frozen in place, Ether would need to gain quite a lot to catch up, and that might take a while, if it happens.
$2,408.68-$0.28 (-0.01%)
CRYPTO · As of 1:58 PM ET 10/17/26
That's a tall order, but it's not an entirely absurd proposition for an asset that just gained 66% in a quarter. Pulling off a recovery to surpass the market's benchmark return would vindicate everyone who held through the slump and go a long way toward repairing the coin's reputation.
But investors should know that a climbing chart is not the same as having an investment thesis. Getting too enthusiastic with purchasing at the moment could quickly become a poor decision if Ethereum cools down a bit.
Averytin News Financial update.