Ethereum Price Shock! HUGE Opportunity or Further Drop Ahead?
Stunning ETH analysis from Fidelity! Is Ethereum undervalued? What are the bullish signals? Don't miss out!

Is Ethereum Signaling Trouble? Surprising Analysis from Fidelity!
While the recent decline in Ethereum (ETH) prices has worried investors, a striking analysis has emerged from Fidelity Digital Assets. According to their report, some key indicators suggest that Ethereum is currently undervalued. This situation could signal either a major buying opportunity or herald a further decline!
What Does Fidelity Say?
According to Fidelity's report, Ethereum's MVRV Z-Score (a metric comparing market value to realized value) dropped to -0.18 in March. This level is historically considered an "undervalued" zone associated with market bottoms. Additionally, the Net Unrealized Profit/Loss (NUPL) ratio approached zero, indicating market "capitulation" (a period of increased selling pressure).
What Does This Mean?
These indicators might suggest that Ethereum is currently "cheap" compared to its fundamental value. Fidelity notes that ETH's realized price (around $2020) is 10% above its current market price. However, Fidelity also warns that, as seen in 2022, the ETH price could potentially drop below the realized price before a recovery begins.
There Are Bullish Signals Too!
Despite the downturn, Fidelity also highlights some positive developments in the Ethereum network:
- Layer-2 Activity: Interest in Layer-2 solutions within the Ethereum ecosystem is increasing. The number of weekly active addresses reached a record 13.6 million.
- Value Decline vs. Bitcoin: Ethereum's market cap ratio relative to Bitcoin (0.13) has fallen back to mid-2020 levels. Some analysts believe this could be a "contrarian buying signal."
Conclusion
The decline in Ethereum presents both risks and opportunities. Fidelity's analysis offers an interesting perspective for long-term investors. However, the market's uncertainty should not be forgotten, and caution is advised.
What do you expect for Ethereum – a rise or a fall? Share in the comments and stay tuned to Trafy.io!