Ethereum (Ethereum), the largest altcoin, hit a new all-time high last August, sparking excitement in the market. Although this rally was expected to continue, Ethereum experienced an unexpected decline, dropping to $2,600.
and Ethereum Bullish expectations continue as it has been above $3,000 in recent weeks, analysis firm AlphaRactal examined Ethereum’s on-chain data.
Cryptocurrency analysis firm Alfaractal said in its latest assessment that Ethereum’s price is volatile and fundamental indicators indicate that: Ethereum Underrated.
The company’s latest analysis shows that the Metcalf Ratio is trending downward and the hiring score is Level 1 (lowest). Historically, this has meant that Ethereum has been undervalued compared to on-chain activity.
According to the company, the decline in the Ethereum-Metcalf ratio indicates that Ethereum’s valuation is not keeping up with the actual network penetration rate. this is, Ethereum Prices are trading below their intrinsic value.
Adoption scores also indicate stagnation in the Ethereum market. The Adoption Score is currently at Level 1, which is the lowest level in its historical range.
The analytics firm said this reflects a stagnant market in terms of valuations compared to in-chain activity.
Historically, this level tends to emerge during periods of indecision or bear markets rather than at the peak of a regional cycle.
*This is not investment advice.
