JPMorgan analysts put the fair value of Ethereum at $1,500, with a bullish outlook for Bitcoin – News Couple
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JPMorgan analysts put the fair value of Ethereum at $1,500, with a bullish outlook for Bitcoin


The value of Ethereum reached an all-time high above $4,600. However, not everyone agrees that the altcoin is fairly priced. Analysts at JPMorgan fall into this category. Although the altcoin has made great strides in the utility field recently, analysts do not believe that the coin has a fair value. They believed that the fair price of the digital asset was actually much lower than its current value.

Ethereum has been one of the most successful digital assets in the market. This was due to the growth of use cases such as decentralized finance and NFTs. Ethereum remains the default blockchain for investors to access these services, and this has seen its native token, ETH, skyrocket over the months. Despite the use cases, JPMorgan analysts assumed the coin was overvalued.

Ethereum should be $1500

JPMorgan released the first issue of the publication focusing on cryptocurrencies. The post will show the company’s position on cryptocurrencies and other digital assets. It opens a window on the company and how they view investments in the market. Nikolaos Banjirzoglou is leading the new publication and brings his knowledge and experience in the field of digital assets to it.

Related reading | Bitcoin ETF Inflows Slow As Altcoins Utility Rebound

Initially, Panigirzoglou focused his attention on Ethereum. The second largest cryptocurrency by market capitalization got some discouraging words from the analyst. According to Panigirzoglou, ETH has been overvalued despite its usefulness in the market. This comes as a surprise to the market as ETH has proven to have more applications than its Bitcoin counterpart.

ETH trading below ATH | Source: ETHUSD on TradingView.com

Banjirzooglu said that the value of ETH was actually much lower than it is now worth. It has put it at 67% below the current price of the asset, putting ETH at levels not seen since the beginning of the year. Analysts said they expect the digital asset to start a downtrend that will put it at 67% below its current value of $1,500.

The reason for this is the increasing competition in the space in which Ethereum operates, Panjirzooglu explained. “This, in turn, creates the risk that the significant increase in Ethereum network activity over the coming years that is implied at the current $4,100 price will not materialize,” Banjirzooglu said.

bullish on bitcoin

In the opening release of the post, JPMorgan analysts didn’t have the same downtrend for bitcoin as they did for Ethereum. If anything, their overall outlook on the asset was very bullish. Analysts revealed their future Bitcoin price targets, with long and short term targets. Both were bullish on the leading cryptocurrency.

Related reading | FOMO Beware: Spot Bitcoin Buying Volume Still Low, Despite New ATH

In the short term, JPMorgan analysts have put the price of bitcoin at $73,000 in 2022. With only two months left in the year, 2022 isn’t as far into the future as one might think. In addition, the long-term outlook for Bitcoin has been very bullish. They assumed they saw the price of the digital asset reach $146,000 in the future.

Analysts attributed their bullish expectations to asset volatility. Also, Panigirzoglou has not seen any competition for Bitcoin unlike Ethereum, which sees a lot of competition from other smart blockchains such as Solana and Cardano.

Featured image from CryptoMode, chart from TradingView.com



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