What if you dollar-cost-averaged monthly into Ethereum for 5 years?
See what dollar-cost averaging into Ethereum every month for 5 years starting in July 2021 would have looked like, calculated from real price data. Because the start point is near a cycle peak, it captures the deep drawdown and recovery that followed.
Investment conditions
Asset · Ethereum (ETH-USD)
Method · Recurring monthly investment
Period · 2021-07-01 ~ 2026-07-01
Amount · $222 / month
As of · 2026-07-01
Key metrics
These results do not reflect taxes. Based on historical data.
Risk & recovery
As important as returns. This service does not hide maximum drawdown or loss periods.
Maximum drawdown (MDD)
-63.6%
Largest drop from peak
Longest loss period
19months
Months in loss: 28
Recovery period
0months
Growth over time
Invested principal (dashed) and portfolio value (solid). Values below match the calculation.
Total invested $13,556 → Final value $9,684 (-28.6%), Maximum drawdown (MDD) -63.6%
Why this period and asset
Ethereum is the best-known altcoin after Bitcoin, a blockchain with smart-contract capability. During the 2020-2021 crypto rally Ethereum rose sharply toward its all-time highs, and this scenario's start point of July 2021 was near that peak phase. In 2022, major events piled up, including the collapse of Terra/Luna and the bankruptcy of the FTX exchange, and Ethereum too fell very sharply from its highs, with some phases where its drawdown was even deeper than Bitcoin's. In September 2022 the 'Merge' upgrade switched its mining to proof-of-stake, and later there were developments around spot ETFs. Note that the Ethereum price data this site can reliably use generally begins around 2017, so the earliest history is not included in this calculation.
Interpreting the result
This scenario shows what accumulating from near a peak looks like. Over this period Ethereum suffered very deep drawdowns from its highs (including declines on the order of 70-80%), and from shortly after the start there was a loss period in which the balance sat well below its principal for some time. The recovery period was not short either, with stretches where reclaiming a prior high took a long time. Be sure to check the maximum drawdown, loss period, and recovery period shown in the results. Dollar-cost averaging (DCA) can lower your average purchase price if you keep buying after prices fall, even when you start at a peak, but this only spreads out timing; it does not eliminate losses. Continuing to invest without flinching during a downturn is especially hard psychologically.
Caveats & limits
Altcoins like Ethereum can be even more volatile than Bitcoin and sometimes fall more deeply, and can lose a large share of their value in a short time. In extreme cases, specific coins or projects have resulted in something close to a total loss. Regulation keeps changing by country and over time, and there are risks of exchange bankruptcy, hacking, and self-custody (wallet) loss. Because this is a foreign asset, the USD exchange rate affects results in your home currency, and taxes such as those on capital gains also eat into actual performance. There is also the limitation that reliable data begins only around 2017. Past patterns do not guarantee the future, and this page does not recommend buying any specific asset.
Data sources & limits
- Price data source: Yahoo Finance / FinanceDataReader
- Collected on: 2026-07-23
- Effective trading date: 2026-07-01
- Price basis: Adjusted close (reflects dividends and stock splits)
- Trading fees and taxes are not reflected — figures are pre-tax.
- Based on historical data; does not guarantee future returns.
Frequently asked questions
What exactly is dollar-cost averaging (DCA)?
Instead of putting in a lump sum all at once, DCA means investing a fixed amount on a fixed schedule (for example, $200 every month) and steadily accumulating. You buy more when prices are low and less when they are high, which smooths your average purchase price. But it only spreads out your entry timing; it does not remove the losses of a falling asset. Starting near a peak in particular can mean a long stretch in the red early on.
Is Ethereum more volatile than Bitcoin?
Altcoins like Ethereum are often even more volatile than Bitcoin and can fall more deeply in bear markets. Even within this 5-year window there was a phase where it dropped roughly 70-80% from its highs. That is why you must look at the maximum drawdown and loss period in the results to understand the real risk.
What about cryptocurrency regulation?
Regulation of cryptocurrencies varies greatly by country and over time and keeps changing. Rules on trading, taxation, and product approvals can shift with policy, and regulatory news can move prices sharply. Before investing, it is essential to check the regulations and tax rules that apply where you live yourself.
Related scenarios
📋 Results are based on historical data; past returns do not guarantee future returns.
📋 This service is provided for educational purposes to help you understand investing, not as investment advice.