A new report from Fidelity Digital Assets suggests Ethereum ($ETH ) may be nearing a market bottom, pointing to strong onchain signals that indicate the asset is trading at a discount.
According to Fidelity’s Q1 2025 Signals Report, Ethereum’s MVRV Z-Score dropped to -0.18 in March, entering the “undervalued” zone, while the NUPL ratio hit 0, signaling market “capitulation.” This suggests that most investors are now holding ETH at a loss — a pattern often seen near price bottoms.
Despite falling 45% in Q1, Ethereum's realized price stands at $2,020, about 10% higher than its current market price. Fidelity notes that long-term holders are showing resilience, while short-term traders may have driven the recent selloff.
In addition, the Ethereum-to-Bitcoin market cap ratio has fallen to 0.13, a level not seen since mid-2020, potentially indicating ETH is undervalued relative to BTC.
Meanwhile, Ethereum’s ecosystem is showing strength. Active addresses across its Layer-2 networks hit an all-time high of 13.6 million last week, led by Uniswap’s Unichain. Layer-2 activity surged 74%, boosting Ethereum’s scaling dominance.
Fidelity’s analysis paints a picture of short-term pain but long-term potential, suggesting that Ethereum’s recent slump may offer a strategic entry point for patient investors.
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