As Ethereum Price Suffers, JPMorgan Strategist Hits The Asset With A 55% Lower Valuation
September 22 2021 - 1:00PM
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The past two days following the weekend close have not been the
best for Ethereum. Along with the broader crypto market, the
digital asset has suffered numerous dips that saw it break below
$3,000 for the first time in a month. Although recovered back above
$3,000, Ethereum continues to have a hard time maintain its
position above this resistance point. Although hopes are up in the
community for recovery, a JPMorgan strategist has warned that the
market is likely to see more dips that will drive the price of the
digital asset further down. The strategist’s forecast essentially
puts Ethereum in a bear market. Placing the bottom of the downtrend
at less than half the current value of the digital asset. Related
Reading | Mid-Cap Altcoins Hold Onto Highs Better Than Bitcoin
And Ethereum Ethereum Is Overvalued JPMorgan global market
strategist Nikolaos Panigirtzoglou said that ETH’s fair value is
actually much lower than its current trading range. The strategist
put the asset’s fair value at $1,500, less than half of its current
price. Unlike the rest of the market, Panigirtzoglou does not
believe that the Ethereal network is the most attractive for
investors, even though the price might suggest otherwise. ETH price
struggles at $2,900 | Source: ETHUSD on TradingView.com The growth
of ETH recently has been attributed to the growth of market
applications like decentralized finance. Currently, Ethereum is the
leading smart contracts platform, which has seen the highest
development of decentralized finance protocols. But even this does
not convince the strategist of ETH’s current valuation. According
to Panigirtzoglou, the actual valuation of the digital asset should
be 55% less than it currently is. Panigirtzoglou points out that
with growing competition from other blockchains like Solana and
Cardano, Ethereum’s offering is no longer unique and “can easily be
replicated by other networks.” The Rise Of The “ETH Killers”
Panigirtzoglou elaborated on the growing competition for Ethereum,
highlighting that there are just going to be more blockchains
popping up to compete with the network in the future. The
strategist brought up Cardano’s latest upgrade, which added it to
the growing list of competitors for Ethereum. “You’re already
seeing competition from Binance, competition from Solana,”
Panigirtzoglou said. “And there are going to be more in the
future,” he added. Related Reading | Ethereum Is Ready For
Inevitable Climb Over $10,000, Says Crypto Analyst The rise of the
so-called “ETH Killers” has certainly been an interesting turning
point for the crypto industry. Although Ethereum still hosts the
majority of smart contract-related activities in the market,
blockchains like Solana have started creeping up to take more share
from the leading blockchain. Giving credence to Panigirtzoglou’s
belief that these blockchains will make ETH less valuable in the
long run. Featured image from Libertex, chart from TradingView.com
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