Cryptocurrency prices have been all over the map as volatility really shakes this group. Initially, only Bitcoin (CCC: BTC-USD) showed signs of weakness. Then Ethereum (CCC: ETH-USD), Bitcoin Cash (CCC: BCH-USD) and others began to fluctuate. It was really quite interesting to see this group. Source: Shutterstock InvestorPlace – Stock News, Stock Advice and Trading Tips February saw most high-growth technology stocks peaking, resulting in a quick, painful bear market for this group. Low quality SPACs with no turnover and other speculative bets fell 70% to 80%. High-quality, high-growth companies fell more than 40%. It was a really big withdrawal, but cryptocurrencies seemed to be working fine. Bitcoin peaked in April on the same day as Coinbase (NASDAQ: COIN) debut. The top for Bitcoin was a red flag for cryptos. Bitcoin was not updated immediately, however. Instead, it pulled back from its high and then drifted a little aimlessly until May. At this point, Ethereum, Dogecoin (CCC: DOGE-USD) and others were rising higher. Now the whole group is volatile. What do the charts say about Ethereum? Ethereum trading after the slump Click to EnlargeSource: Chart courtesy of TrendSpider In early April, Ethereum broke out above its resistance, replacing $ 2,000 in the process. In a very bullish development, the cryptocurrency’s previous resistance then became its support. This has paved the way for a surge above $ 4,000. However, these prices could not be sustained and Ethereum crashed back to earth. From its peak to its most recent low, it fell 60.5%. This decline lasted just a few days to illustrate how volatile this space can be, both on the way up and on the way down. 7 Cheap Dividend Stocks For Yield and Cash Flow Despite Ethereum’s heavy losses in recent times, there are some silver linings for it. First, the area near USD 2,000 that the currency hit during its previous breakout served as support after the violent retreat. Second, the 21-week moving average also served as a support. As a result, there are some benchmarks to watch for when the currency is falling. However, Ethereum also had its challenges. The 50-day moving average continues to act as resistance, and there are questions about whether Ethereum can recapture the $ 3,000-3,250 area without seeing at least one more drop first. If the currency clears $ 3,000, keep an eye on $ 3,250, which is roughly the 21-day moving average. When Ethereum rises above this point, the level of over $ 3,500 is in play. On the flip side, I wouldn’t hate retesting the $ 2,000 range, which is roughly the 21-week moving average. If that point doesn’t apply, we may see a test of the 200-day moving average and a retest of the previous all-time high near $ 1,425. Such a drop would likely create a reasonably good buying opportunity for crypto investors. Is Ethereum Safe To Buy? Investors need to understand something when it comes to cryptocurrencies: this group is incredibly volatile! I’m not exactly a die-hard cop when it comes to the group either. They have meaningful uses and a limited, controlled amount of supply. As a result, cryptocurrencies are somewhat attractive. Especially with Ethereum, the currency has attractive and useful properties. This is one of the reasons why so many people believe it is convenient to pay for it and why NFTs are always bought with it. Even so, this group is so volatile that it is hard to imagine that it will ever be used worldwide. Not to mention the regulatory issues involved, or the fact that virtually every government in the world would fight it. Put simply, I don’t think Bitcoin, Ethereum, or any other cryptocurrency will replace the US dollar. But that doesn’t mean we can’t make money with this group, or that I think it’s going to go away. We have to keep in mind that in just 42 days, Ethereum more than doubled, up 128.4%. After the high, it only took 11 days to fall more than 60%. This is not the kind of stability a reserve currency needs. So is Ethereum safe to buy? I don’t think cryptocurrencies are disappearing, but high volatility will deter many investors from calling Ethereum “safe”. There are a handful of cryptos that are likely to be persistent. Bitcoin is the obvious, but Ethereum should be fine too. As a result, I agree to buy these names due to weaknesses by using part of the investment portfolios dedicated to speculative assets. I would love an opportunity to buy Ethereum between $ 1,400 and $ 2,000, although that opportunity may have passed. At the time of publication, Bret Kenwell held positions (neither directly nor indirectly) in the securities referred to in this article. The opinions expressed in this article are those of the author, subject to InvestorPlace.com posting guidelines. Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. More from InvestorPlace Stock Prodigy who found NIO for $ 2 … Says you buy THIS now It doesn’t matter if you get $ 500 or $ 5 million in savings. Do this now. Top Stock Picker Reveals Its Next Potential 500% Winner When Is It Safe To Buy Ethereum? first appeared on InvestorPlace.