JPMorgan Analysts Put Ethereum Fair Value At $1,500, With Bullish Outlook For Bitcoin

Picture of an Ethereum coin with red downward trendlines behind it

Ethereum’s worth has hit a latest all-time excessive above $4,600. However, not everybody agrees that the altcoin is pretty priced. Analysts at JPMorgan fall into this class. Although the altcoin has made nice strides in utility not too long ago, the analysts don’t imagine that the coin is pretty valued. They believed that the truthful worth of the digital asset is in truth a lot decrease than its present worth.

Ethereum has been one of the profitable digital belongings out there. This has been because of the development of use instances similar to decentralized finance and NFTs. Ethereum stays the default blockchain for traders to entry these companies and this has made its native token, ETH, rally over the months. Despite its use instances, JPMorgan analysts have posited that the coin is overvalued.

Ethereum Should Be $1,500

JPMorgan launched the first issue of a publication that focused on cryptocurrencies. The publication would present the agency’s stance on crypto and different digital belongings. It opens a window into the agency and the way they’re viewing investments out there. Nikolaos Panigirzoglou is on the lead of the brand new publication and brings his data and experience within the digital belongings area to it.

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Starting out, Panigirzoglou targeted his consideration on Ethereum. The second-biggest cryptocurrency by market cap obtained some not-so-encouraging phrases from the analyst. According to Panigirzoglou, ETH was wildly overvalued regardless of its utility out there. This comes as a shock to the market as ETH has confirmed to have extra purposes than its counterpart bitcoin.

ETH buying and selling beneath ATH | Source: ETHUSD on TradingView.com

Panigirzoglou stated that ETH’s worth was really a lot decrease than it’s value now. He put it at 67% much less worthwhile than the present worth of the asset, which places ETH at ranges not seen for the reason that starting of the 12 months. The analysts put ahead that they count on the digital asset to start a downtrend that may put it at 67% lower than its present worth, which is $1,500.

Panigirzoglou defined that rising competitors within the area wherein Ethereum operates is the rationale for this. “In flip, this creates the chance that the substantial improve within the ethereum community exercise over the approaching years embedded within the present worth of $4,100 may not materialize,” Panigirzoglou stated.

Bullish On Bitcoin

In the inaugural concern of the publication, JPMorgan analysts didn’t have the identical bearish sentiment for bitcoin as they did for Ethereum. If something, their general outlook for the asset was very bullish. The analysts revealed their future worth targets for bitcoin, with each lengthy and short-term targets. Both of those have been optimistic for the pioneer cryptocurrency.

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For the quick time period, JPMorgan analysts put the worth of bitcoin at $73,000 in 2022. With solely two months left within the 12 months, 2022 just isn’t as far off into the long run as one would assume. In addition, the long-term outlook for bitcoin was additionally very bullish. They posited that they noticed the worth of the digital asset hitting as excessive as $146,000 sooner or later.

The analysts attributed their bullish outlook to the volatility of the asset. Also, Panigirzoglou didn’t see any competitors for bitcoin versus Ethereum, which sees a variety of competitors from different good contracts blockchains like Solana and Cardano.

Featured picture from CryptoMode, chart from TradingView.com

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