Ethereum faces a critical challenge: rising supply now outpaces demand, impacting price growth. The Dencun upgrade, while reducing transaction fees, weakens the network’s deflationary mechanism. However, Ethereum’s upcoming Pectra upgrade offers potential for scalability enhancements and renewed hope. On-chain data from CryptoQuant suggests a rare undervaluation of ETH compared to Bitcoin, potentially signaling an opportune entry point for buyers. Though historically low MVRV ratios have often preceded price outperformance, established fundamentals pose substantial roadblocks in Ethereum’s potential resurgence. The rise in ETH supply to over 120.7 million ETH reflects a shift away from the post-merger deflationary perspective. This surge of Ether presents both challenges and opportunities for the network’s future.