Ethereum’s gas usage has surpassed its price growth, indicating potential undervaluation despite recent price weakness. Institutional players and even political figures like Donald Trump are showing support for Ethereum, raising long-term confidence in the cryptocurrency. While the market may be overlooking Ethereum’s potential, two key signals suggest that it could be trading below its true value.
First, the Net Taker Volume data shows that sellers are losing momentum, typically followed by price reversals. Second, on-chain gas usage has remained consistently high even as the price of Ethereum has decreased, indicating strong network utility being ignored by the market. As institutions continue to accumulate and selling pressure weakens, it is becoming harder to ignore the mismatch between Ethereum’s fundamentals and its current valuation.
Institutional confidence in Ethereum is growing, with Galaxy Digital depositing a significant amount of ETH to Binance, and President Trump holding 94% of his crypto portfolio on the Ethereum blockchain. Trump’s reliance on Ethereum reinforces the network’s cultural and political relevance, serving as a confidence signal for investors. This suggests that Ethereum remains the platform of choice not only for developers but also for influential players betting on its longevity.
Despite Ethereum’s price trading at $1,575 with a downtrend since mid-February, indicators like the RSI and MACD suggest a possible reversal in the near future. The RSI is indicating that Ethereum is approaching oversold territory, while the MACD shows a potential bullish divergence as the signal line moves closer to the MACD line. Consolidation around current price levels indicates a possible reversal if buying momentum increases.
Overall, Ethereum’s strong network utility, institutional support, and political relevance suggest that the cryptocurrency may be undervalued, with potential for a price reversal in the near future. As confidence in Ethereum grows, it is becoming increasingly clear that the market may be overlooking its true value, making it a potentially lucrative investment opportunity for those who recognize its long-term potential.
