The last two days after the weekend closed were not the best for Etherium. In addition to the larger crypto market, digital assets have faced numerous dips that have seen it break below $ 3,000 for the first time in a month. Although recovered above $ 3,000, Ethereum has been having a difficult time maintaining its position above this resistance point.
While there is hope for recovery in the community, a strategist at JPMorgan warned that the market is likely to see further declines that would further lower the value of digital assets. The strategist’s forecast basically puts Ethereum in a bear market. Placing below the downtrend in less than half of the current value of digital assets.
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Etherium is extremely valuable
JPMorgan Global Market Strategist Nicholas Panigartzoglu says the fair value of ETH is actually much lower than its current trading range. The strategist puts the fair value of the asset at $ 1,500, which is less than half of its current value. Unlike the rest of the market, Panigirtzoglou does not believe that the ethereal network is the most attractive for investors, although the price may offer otherwise.
ETH price struggles at $2,900 | Source: ETHUSD on TradingView.com
The growth of ETH has recently been attributed to the growth of market applications such as decentralized money. Currently, Etherium is the leading smart contract platform, which has seen the highest development of decentralized money protocols. But it also can’t trust ETH’s current valuation strategist.
According to Panigirtzoglou, the actual valuation of digital assets should be 55% lower than at present. Panigirtzoglou points out that with increasing competition from other blockchains such as Solana and Cardano, Ethereum’s offer is no longer unique and “can be easily replicated by other networks.”
The rise of the “ETH killers”
Panigirtzoglou elaborates on the growing competition for Etherium, which is set to become more a blockchain to compete with the network in the future. The strategist has come up with Cardano’s latest upgrade, which has added it to Ethereum’s growing list of competitors. “You’re already watching the competition from Benson, the competition from Solana,” Panigirtzoglu said. “And there’s going to be more in the future,” he added.
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The rise of so-called “ETH killers” was certainly an interesting turning point for the crypto industry. While Etherium still hosts most of the smart contract-related activities on the market, blockchains like Solana are beginning to take more and more share from leading blockchains. Panigirtzoglou believes that these blockchains will make ETH less valuable in the long run.
Featured image from Libertex, chart from TradingView.com