Fidelity Digital Assets reports that several onchain metrics indicate Ethereum (ETH) is currently undervalued. Despite a rough start to 2025 where ETH price fell by 45% in Q1, wiped gains from the US elections, and displayed bearish patterns, the firm suggests that recent developments could signal a positive turn. The MVRV Z-Score indicates a recent drop to -0.18, historically representing market bottoms. Additionally, the Net Unrealized Profit/Loss (NUPL) ratio has reached zero, suggesting capitulation among holders. Ethereum's market cap to Bitcoin stands at 0.13, akin to mid-2020 levels, reflecting a prolonged decline. On a more optimistic note, there has been a surge in Ethereum layer-2 engagement, with active addresses climbing to 13.6 million, supported by the new Unichain protocol by Uniswap that led in weekly active addresses, highlighting growing adoption in the ecosystem.

Source 🔗