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Just as the price of Ethereum’s native ETH token is testing new all-time highs on Tuesday, private notes to customers of two major investment banks show how different analysts from major financial institutions see the second largest crypto asset.
At 16:23 UTC, ETH was trading at $ 4,489 after hitting $ 4,531 or its new all-time high today. The price increased 3% in one day and 6% in a week.
In the meantime, Goldman Sachs‘Global Markets Managing Director Bernhard Rzymelka estimates that the ongoing inflationary pressures in the economy will support ETH as it “has been following the inflation markets particularly closely, which is likely to reflect the procyclical nature” [a] ‘Network-based’ asset. ”According to the note, crypto assets, as represented by the Bloomberg Galaxy Crypto Index, have been trading in line with inflation breakeven since 2019.
And, according to Rzymelka, the increased inflation rates are expected to continue, which could push the price of ETH down to as much as $ 8,000, according to a ZeroHedge article quoting the private note.
“The recent spike in inflation breakevens suggests upside risk,” the Goldman analyst wrote, adding that “this is in pretty good alignment with the Ethereum chart, suggesting a late-stage rally with a longer-term market high ahead suggests. “
However, not everyone is optimistic about the ETH price. In September Nikolaos joined Panigirtzoglou, global market strategist JPMorgan, said the Ethereum network is facing growing competition from other chains such as Solana (SOL) and Cardano (ADA), which has made the network less attractive than current price suggests.
“We look at the hashrate and the number of unique addresses to understand the value of Ethereum. We’re struggling to get above $ 1,500, ”Panigirtzoglou said, according to Insider, who quoted a private note to customers.
The strategist then warned further:
“There’s a question mark here. The current price expresses an exponential increase in usage and traffic that may not materialize, ”said the market strategist.
Meanwhile, following Ethereum’s implementation of the EIP-1559 upgrade, which first introduced a mechanism to burn off some of the ETH paid as transaction fees, the Ethereum community has often argued that ETH is too “ultra healthy Money “will.
This was also emphasized by the team at OKEx‘s Blockchain Explorer OKLinkwho wrote on Twitter on Monday that ETH had been deflationary in the “past few days”.
However, people and institutions looking for solid money to protect against inflation should look elsewhere, according to some senior members of the crypto community.
As Erik Voorhees, CEO of the crypto trading platform, noted ShapeshiftingA prerequisite for recognition as “healthy money” is “predictability over long periods of time” of monetary policy.
“ETH can earn this quality over time, but not if the mechanisms change frequently,” said Voorhees.
As the price has increased and usage of the Ethereum network has increased, so have the transaction fees paid by users on the network.
Based on the 7-day moving average of transaction fees, the fee level hit an all-time high of nearly $ 50 on Monday of this week. However, looking at the raw values as presented by BitInfoCharts, the average fee level on Monday was USD 51.6, still below the May all-time high of nearly USD 70.
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(Updated at 16:25 UTC with the latest market data.)