Ethereum Hits Deepest Undervaluation Zone in Years, Analysts Predict Rebound

Ethereum Faces Deep Undervaluation, Says Bitwise

According to a report by Decrypt, Ethereum is currently in one of its "deepest undervaluation zones in years," as stated by analysts at crypto asset manager Bitwise. The cryptocurrency has been underperforming against Bitcoin since late 2022, with its ETH/BTC value dropping by 47% over the past year. At the time of reporting, 1 ETH was equivalent to 0.027 BTC. Bitwise's head of research, Andre Dragosch, attributes this to Ethereum being "fundamentally mispriced" relative to its on-chain activity and adoption metrics.

Factors such as the rise of Layer 2 scaling solutions and the growing popularity of artificial intelligence and meme coins have contributed to Ethereum's struggles. These trends have fragmented activity across ecosystems, limiting the value captured by Ethereum's base layer. Despite these challenges, historical data suggests Ethereum could rebound, as it has secured positive returns against Bitcoin in seven of the past eight years. For more details, visit Decrypt's article at https://decrypt.co/305492/ethereum-is-in-one-of-its-deepest-undervaluation-zones-in-years-bitwise.

Abra CEO Predicts Massive Price Targets for Bitcoin, Ethereum, Solana, and Sui

The Daily Hodl reports that Abra CEO Bill Barhydt has issued ambitious price targets for major cryptocurrencies, citing potential economic policies under the current U.S. administration. Barhydt predicts Bitcoin could reach $350,000, Ethereum $8,000, Solana $900, and Sui $25 in the current cycle. He attributes these projections to anticipated liquidity injections into the market, driven by lower interest rates and tax cuts.

Barhydt also highlighted the potential for the digital asset market capitalization to grow to $50 trillion within a decade, fueled by the tokenization of real-world assets. At the time of writing, Bitcoin was trading at $97,449, while Ethereum stood at $2,662. For the full analysis, refer to The Daily Hodl's article at https://dailyhodl.com/2025/02/11/abra-ceo-unveils-massive-base-case-price-targets-for-bitcoin-ethereum-solana-and-sui/.

Goldman Sachs Increases Ethereum ETF Holdings by 2,000%

TradingView reports that Goldman Sachs has significantly increased its exposure to Ethereum ETFs, boosting its holdings by 2,000% in Q4 2024. The investment bank now holds $476 million in Ethereum ETFs, including BlackRock’s iShares Ethereum Trust and Fidelity’s Ethereum Fund. Additionally, Goldman raised its Bitcoin ETF holdings by 114%, reaching $1.52 billion.

This move reflects a growing trend of institutional adoption of cryptocurrencies, supported by a favorable regulatory environment. Goldman’s increased exposure aligns with rising market prices for Bitcoin and Ethereum, which saw gains of 41% and 26.3%, respectively, during the same period. For more information, visit TradingView's report at https://www.tradingview.com/news/cointelegraph:c6ddb73bd094b:0-goldman-sachs-boosts-ethereum-etf-holdings-by-2-000-bitcoin-etfs-to-1-5b/.

Ethereum's Long-Term Outlook Remains Strong

Crypto.news highlights that while Ethereum's price remains under $2,700, its long-term fundamentals are robust. On-chain data shows a steady increase in Ethereum holders, reaching 138.98 million. Metrics such as the Network Realized Profit/Loss and derivatives traders' sentiment suggest a potential price recovery.

Experts believe Ethereum's value proposition remains strong, with its ecosystem processing over $30 billion in daily transactions across Layer 2 networks. However, institutional interest in Ethereum ETFs has been slow, with recent outflows of $22.5 million. For a detailed analysis, read the full article on Crypto.news at https://crypto.news/is-ethereum-dead-or-gearing-for-a-comeback-deep-dive-into-ether/.

Total Value Locked on Ethereum Rises Despite Price Drop

CoinDesk reports that while Ethereum has dropped over 20% year-to-date, its total value locked (TVL) has risen significantly. Analysts at Citi note that Ethereum's fundamentals are improving, with increased user activity and ETF inflows. Since their launch in July, Ethereum ETFs have seen total inflows of $3.2 billion.

Despite competition from Layer 2 solutions and other blockchains like Solana, Ethereum remains a critical player in the crypto ecosystem. For more insights, refer to CoinDesk's article at https://www.coindesk.com/markets/2025/02/11/ether-has-underperformed-but-total-value-locked-on-ethereum-is-rising-citi.

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