Last week JPMorgan published a note shared by Business Insider in which analysts assured that Ethereum (ETH) is overvalued and, in fact, its price should be approximately $ 1,000.
Ethereum price should be 75% lower
Ethereum (ETH) has joined the recent Altseason with which the crypto has managed to reach an all-time high above USD 4,300. In fact, in the last 7 days, ETH has risen by 17%.
According to CME Group, and as we have previously explained in CryptoTrend, Ethereum has seen an increase in interest as a result of the rise of decentralized finance (DeFi). However, apparently JPMorgan believes that Ethereum has actually been overvalued.
JPMorgan analysts argued that the crypto’s network indicators indicate that it should trade up to 75% below its current value. In this regard, according to analysts, the price of Ethereum should be approximately $ 1,000.
In the note, the analysts explained that the indicators of computing power and the activity in the network of a crypto can offer a reasonable value for the cryptocurrency. In this way, evaluating the mining activity of Ethereum, it should be priced at USD 1,000.
Should we expect a correction?
In the report, JPMorgan analysts do not appear to have suggested a possible Ethereum price correction. However, they do suggest that Ethereum investors may have anticipated some upcoming events. These could raise the fair value of the crypto.
Regarding these upcoming events that could increase the value of Ethereum, these are network updates that aim to increase the scalability of the cryptocurrency.
Therefore, while they are not directly forecasting a price correction, Ethereum investors will undoubtedly have to take this observation into account. And, consequently, watch that the gap narrows without collapsing the price of Ethereum.