We just had the most insane 24 to 48 hours in ETH’s price history that even rivals that of late 2017/early 2018. We experienced an absolutely violent swing of the sentiment pendulum with ETH rocketing from $780 to $1150 in just ~24 hours. Though, at times like these, I believe that it’s important to stay grounded and realign yourself.
For those of you who follow me on Twitter you’ll know I’m very guilty of being too hyped up about ETH’s price movements and celebrating a bit too much. Though, I think at this point those of us who have worked through the bear market deserve to celebrate every time our work plays out in the markets because I believe that we’ve all earned it. In saying that, it’s good to remember that crypto markets don’t just go up forever and are always extremely volatile (and that no one really knows where the prices are going).
If you’ve had a long-term sell plan in place then it’s probably best to stick to it and not get too greedy. Though I totally understand that it can be hard to stick to plans made in the bear market when ETH was below $200 and now ETH is hovering at around $1,000 - it’s basically a totally different market and it’s easy to get caught up in the mania. For those that participated in DeFi summer you already had a taste of this and had a view into just how quickly things can change and just how easily people can get stuck “holding the bag”.
I also think it’s prudent to not lose sight of the real reason you’re in the Ethereum ecosystem. Are you here to build, educate, be part of a community, experience something new or just simply ride along and watch Ethereum take over the world? Personally I’m here for all of that and I believe the money that we all make along the way is just the cherry on top - the real reward is being part of something much bigger than ourselves.
I do still think we’re just entering the early stages of a bull market and we’ve got a little while left before we go into another crypto winter but that doesn’t mean you should cancel all of your take-profit plans (or not have a plan at all). It’s near impossible to spot tops (or bottoms) and I believe that if you are trying to do that then there’s a high chance you’ll shoot yourself in the foot. If you haven’t set any sell targets at this point I would suggest doing so and tailoring them to your personal circumstances.
And always remember: the only thing worse than taking profits too early is not taking profits at all.
Have a great day everyone,
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All information presented above is for educational purposes only and should not be taken as investment advice.