Analysis from Fidelity Digital Assets indicates that several on-chain metrics reflect Ethereum's price as currently undervalued. The BTC/ETH market cap ratio stands at mid-2020 levels, while Ethereum's layer-2 active addresses have surged to 13.6 million, marking a significant rise in scalability and adoption. Despite a challenging Q1 where ETH's price dipped 45%, Fidelity points out that this decline may present a buying opportunity. Key metrics such as the MVRV Z-Score entering the undervalued zone and the Net Unrealized Profit/Loss (NUPL) ratio suggesting capitulation reflect potential market bottoms. Fidelity's insights note that while ETH price remains below the realized price, which averages $2,020, long-term holders appear to have stabilized the base price. The firm's analysis emphasizes that despite historical trends of further declines post-realized price breaches, the recent uptick in layer-2 engagements and bullish indicators could signal a reversal ahead for Ethereum.

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