Ether Price Undervalued But The Fundamentals Are Not Looking Good

  • After a bad March, ETH price seeing greens, MVRV Ratio says ETH undervalued
  • While Bitcoin active addresses on the rise, Eth’s declining but its exchange inflow, especially on Bitfinex increasing while Bitcoin’s decreasing
  • With GETHE shares to be unlocked soon, they would be making “absolute bank off the back of retail traders”

Bitcoin fundamentals are growing with mining showing healthy recovery with an estimated hash rate increase of 7.3%. This rise in hash power suggests that inefficient miners have started to capitulate and are being replaced by more efficient miners.

The crypto market is also showing signs of recovery after the Bitcoin price jumped above $7,000 and altcoins followed suit.

These price gains have 56% of Bitcoin addresses in profit while the second-largest cryptocurrency Ether has 63% of its addresses in the loss. The Ethereum Index was actually the worst performer through March.

However, Ether’s the MVRV Ratio, a metric that assets if the price of a digital asset is above or below its “fair value” is currently at 0.8 which indicates that the crypto asset is undervalued right now.

The realized price of ETH is above $200 while the current market value is $168.

Just like the price, while Bitcoin’s active addresses showed positive signs of recovering this week, increasing by 63%, Ethereum’s active addresses tumbled.

Ether’s active addresses saw a decline of 13.4% week-over-week. Since peaking at 537,000 on March 21st, the highest daily total since May 2018, ETH daily addresses have been declining, recording 310,000 on April 5th.

ETH’s Exchange Inflow Increasing

Now, interestingly, the amount of ETH held by the exchanges viz. Bitfinex, Binance, Bitstamp, Bittrex, Gemini, Huobi, Kraken, BitMEX, and Poloniex increased by about 5% over the last 30 days.

Source: CoinMetrics

The amount of BTC held on exchanges, on the other hand, decreased by about 3% which has been largely due to the rapid decrease in the supply held by derivatives exchange BitMEX. BTC held in BitMEX has been in freefall over the past few weeks, from 315k BTC on March 29 to 244k, after it went through mass liquidations on March 13 during the crypto carnage.

Bitfinex out of all the exchanges meanwhile had the largest increase in ETH supply, increasing about 17% over the last 30 days while no other exchanges have had more than a 10% increase.

Now, it’s to be seen if these investors are looking to cash out and put selling pressure on ETH price.

Institutional investor to make bank off retail traders

Meanwhile, about 5% of GETHE (Grayscale Ethereum Trust) shares are publicly traded and analyst Ceteris Paribus noted, when these shares are unlocked soon, they would be making “absolute bank off the back of retail traders.”

The trust took in about $100 million in ETH in 2019, most of which have been in the second half of the year with an average ETH price of $195.

“Looks like the bulk of the 2019 ETHE flows came in between the end of June – September, so should see premium come down in summer at the latest,” stated Paribus.

Ethereum (ETH) Live Price

1 ETH/USD =$3,904.8001 change ~ -0.33%

Coin Market Cap

$452.26 Billion

24 Hour Volume

$29.23 Billion

24 Hour VWAP

$4.07 K

24 Hour Change


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