Ether crypto jumped to a fresh high on Tuesday (May 4, 2021) before diving sharply as investors booked profits. On the bitstamp exchange before slumping 6 percent, the token surged to hit a new high of $3457.64.
This translates to around 340 gains for the digital currency for the year 2021 thus far. Part of the rally in ether is also owed to gains in bitcoin, which drew investors such as Tesla's Elon Musk and Wall Street investor Stanley Druckenmiller into it.
Speculative frenzy is such assets is also causing the bubble as is the case with Dogecoin i.e. up over 9000 percent so far this year. Also, there have been proliferation of other new token and investors have piled them up in small quantities.
"What we're seeing right now is the definition of speculative excess," said IG Markets analyst Kyle Rodda, who likened it to the tech-bubble mania of two decades ago."There's money being thrown at anything in the cryptospace," he added.
Bitcoin on the other hand which is 90 percent up this year has dipped to $55,625.