Ethereum’s Undervalued Status Raises Concerns About Potential Trap Amidst Market Headwinds

Ethereum (ETH) experienced a sharp drop in price before staging a strong recovery, but it remains trading at a significant discount to Bitcoin (BTC). According to the latest analysis from on-chain analytics platform CryptoQuant, ETH is now in “extremely undervalued” territory according to its market value relative to realized value (MVRV ratio), a historical indicator of major ETH rebounds. However, CryptoQuant cautions that the current undervaluation might not be a buying opportunity, pointing to several factors contributing to it.