#BinanceAlphaAlert
Ethereum News: Fidelity Report Signals Ethereum May Be Undervalued Amid Growing Layer-2 Adoption
Fresh analysis from Fidelity Digital Assets suggests that Ethereum (ETH) may be trading below its fair value, despite weak recent price performance, with multiple onchain metrics pointing to potential bottoming and network growth.
Key Highlights:
Fidelity notes Ethereum’s MVRV Z-Score dropped into the “undervalued” zone for the first time since the last cycle bottom.
Ethereum’s layer-2 active addresses surged to an all-time high of 13.6 million.
ETH’s market cap relative to Bitcoin (BTC) is back to mid-2020 levels.
Ethereum Undervalued Despite Bearish Q1 Performance, Fidelity Finds
According to Fidelity's latest Signals Report, Ethereum has endured a challenging first quarter, dropping 45% from its January peak at $3,579. ETH’s 50-day simple moving average fell 21% below its 200-day SMA in March, forming a death cross, traditionally seen as a bearish technical signal.
