🔍 Is ETH Price Bottoming Out? Fidelity Digital Assets: Multiple On-Chain Indicators Suggest ETH is Undervalued!!!
📉 In Q1 2025, Ethereum plummeted 45%, with prices dropping to 1,814, losing the gains made after last year's US elections, but Fidelity's analysis suggests this may be a signal of 'opportunity'!
🌐 Several Key Points:
1️⃣ Market Cap Ratio: The BTC/ETH ratio has returned to mid-2020 lows, implying ETH may be undervalued.
2️⃣ On-Chain Indicators: The number of active addresses on Ethereum Layer 2 reached a new high of 13.6 million, with a surge in ecosystem participation, increasing network activity and adoption.
3️⃣ MVRV Z-Score: Fell to -0.18, entering the undervalued zone, historically this level marks a market bottom.
4️⃣ Short-Term Selloff?: Realized price is 2,020, currently 10% lower, short-term holders may be selling, while long-term holders remain cautious.
⚡ Bearish Death Cross VS Potential Rebound: Although short-term volatility may continue, once recovery begins, ETH is expected to experience a more significant rebound. The key is the continued expansion of the ecosystem, with Layer-2 dominance showcasing ETH's strong resilience.
📈 Trend Reversal: CRG points out that ETH has broken through the 12-hour Ichimoku Cloud for the first time, indicating a return of bullish sentiment. This suggests that ETH's rebound may just be a matter of time!
💬 Conclusion: Even though ETH's price trends are volatile in the short term, on-chain data and ecosystem development indicate that ETH still possesses strong potential.
