Ether prices have had a great few days, rallying as the prominent digital currency experienced a natural recovery.The world’s largest altcoin (digital currency besides bitcoin) climbed to as much as $2,707.82 today on CoinDesk.
At this point, the cryptocurrency was up more than 56% from the recent low of $1,733.58 it hit yesterday, additional CoinDesk figures reveal.
The digital asset enjoyed this strong, upward movement after experiencing some notable losses in the last few weeks, shedding more than half of its value since reaching an all-time high near $4,400 on May 12.
[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.]
Ether’s latest gains are the result of “a relief rally,” said digital currency investor Marius Rupsys.“Crypto markets have a lot of leverage in 2021 compared to previous bull cycles in 2013 and 2017,” he noted.“Therefore, we have wild swings both ways – upwards and downwards.” said Rupsys.The “latest drop in digital asset prices was driven by overleverage and then forced liquidations that were triggered by Elon Musk and other events. We have days when $10 billion in crypto is liquidated in a single day,” he emphasizedHowever, while the aforementioned conditions help fuel intense volatility in cryptocurrencies, they also create “opportunities to buy,” noted Rupsys.Ether ‘Heavily Undervalued’The Ethereum platform has been benefiting from significant development, and it has been drawing millions per day in fees from users.Rupsys spoke to these conditions, noting that because it is the “most used blockchain and people pay a lot of fees to use it,” its native token, ether, is “heavily undervalued relative to recent prices.”“This creates an opportunity for investors to buy it,” he stated.Rik Willard, founder and managing director at Agentic Group, offered a similar point of view, also claiming that ether prices are undervalued, providing a buying opportunity for investors.
He asserted that for the time being, the altcoin’s price movements are frequently linked to those of bitcoin.Ether “is the long-term steady performer and any dips are due to (increasingly irrelevant) links to the vicissitudes of Bitcoin at this still-early stage.”Willard singled out Ethereum as being a platform with robust activity, one that developers use to build decentralized applications (DApps).“That suggests an actual value prop that many profess to have, but few actually produce,” said Willard.“As such, the token represents the value of the totality of dapps/projects/etc being built on it, at any given point in time. It’s essentially a massive global venture platform where a holder gets to be something approximating a limited partner.”Willard stressed that “most” of the applications being built won’t “take off.”However, the few that do achieve “big wins on a global scale” “should be a solid force for stability and long-term growth” that “ultimately skyrocket Ethereum-based tokens and decouple them from whatever Bitcoin’s ultimate fate is.”