Have Ether Prices Become Overheated After Their Latest Gains?

Have Ether Prices Become Overheated After Their Latest Gains?

Analysts weigh in on ether after its latest price gains. (Photo by Jaap Arriens/Sipa USA) (Photo by ... [+] Jaap Arriens/NurPhoto via Getty Images) The digital currency, which serves as the native asset of the Ethereum platform, surpassed $4, 000 yesterday, reaching an all-time high of $4, 213. 46 today, according to CoinDesk. At this point, the cryptocurrency had risen more than 400% year-to-date, after starting 2021 below $750, additional CoinDesk figures reveal. [Ed note: Investing in cryptocoins or tokens is highly speculative and the market is largely unregulated. Anyone considering it should be prepared to lose their entire investment.] While ether has enjoyed some astronomical upside this year, certain market observers have expressed concerns that it may have become overheated. "The continued divergence of its price relative to network activity raise questions about its valuation," J. P. Morgan analysts warned in a recent client note, according to Reuters. Jeff Dorman, chief investment officer of asset manager Arca, offered some helpful background context on the situation. "To borrow a phrase from my friend Jesse Proudman at Strix Leviathan, digital assets have 'opaque fundamental value, but that doesn't mean no fundamental value.' It means most market participants don't share the same