UPDATE: The fight for 300 is on. The resistance has dropped about 50 over the past few days. We should see fluctuations below the 290 and 280 mark. With optimal buying for holders at 250. The volume of buys and sells are about even so we'll see if it stabilizes and climbs to 300 or drops down again.
The drop has been long expected. It's a mix of market correction, over saturation, and herd mentality. If you look at the trade volume over the past 2.5 hours, you will see a sharp decline as people are panic selling thinking that ETH will continue to drop probably in the hops of buying low. They will get screwed.
I am quickly writing this post in the mist of the dip to say STOP DO NOT SELL. Do not fall into the herd mentality. If you are smart, you are looking or have bought as I have when it dipped to around the 320-335 mark. Why should you hold?
Think in terms of resistance and support. ETH had periods of heavy resistance around the 200 mark. Every crypto, even stocks, have these resistance marks where people are willing to sell. This then drives the price down and puts it into a dip creating great buying opportunities.
Look for support levels. A support level is when a currency starts to bounce back from a dip and stabilize creating what looks like a plateau or a "base." If you look at the below chart from the technical analysis today , support is still sitting around the 345 to 355 mark. We should see fluctuations within +/- 20.
ETH is a long term investment?
The fundamental technology has not changed. ETH is still ETH and we are only at the start of its potential. Countries and banks are just starting to look at building platforms. Smart contracts are still a thing.
Buy undervalued currency and HOLD. Do not try to margin trade the crypto market. Just like penny stocks - success is rare and far between due to the volatility. Crypto is a long term game. Buy at dips and hold.
Whether the rumored flippening happens or not remember that BTC and ETH are essentially two different things with two different functions. BTC is a transnational system while ETH is a platform. What will dominate are which on can adapt to use cases the fastest. ETH is better poised to do so with its faster block chain, smart contracts, and so forth but that's not to say BTC is going anywhere soon. In fact if you look at the charts ETH and BTC can be transposed on one another.
Buy at lows guys. If you trust the ETH tech, like I do, buy when the the financial analysts are panicking.
Edit: WOOOO again at 250.