Ethereum (ETH) Is Cheap, But Not at Bottom Yet: Analysts

According to onchain analytics platform CryptoQuant, Ethereum (ETH) is currently trading around 17% below its realized price of $2,300, but the data suggests the bottom is not yet in. “Ethereum is cheap, but the data says the bottom isn’t in yet,” the firm stated on Thursday, noting that only two of five signals have reached historical bottoming levels. “Selling pressure is easing. Capitulation is still missing.”

Historically, trading below the realized price signals holder losses that tend to exhaust sellers and mark bottoms. However, the analysts emphasized that cheapness alone is insufficient. Timing of a bottom depends on Ethereum’s position relative to Bitcoin, measured by the ETH/BTC MVRV ratio. This ratio has fallen from “extreme overvaluation to neutral,” but not to extreme cheapness. Additionally, the exchange inflow ratio has dropped from over 1.5 to about 0.8 as selling pressure eased, but it hasn’t reached the ~0.4 low-pressure zone seen at past bottoms. Spot volume ratios have collapsed to levels last seen in ETH/BTC bottoms, but the other three signals are not yet aligned.

CryptoQuant concluded that while ETH remains cheap, a “final bottom and the ETH outperformance that would follow may still take more time to form.” They added that ETH is approaching undervalued levels relative to Bitcoin, pointing to lower downside pressure ahead.

Fundamentally, Ethereum remains strong with growing real-world asset tokenization and agentic AI payment narratives. Sharplink CEO Joseph Chalom, who spent 20 years at BlackRock, commented, “Ethereum has the characteristics that institutions need. Before you move financial rails that are 40, 50, 60 years old, you want it to move to something that’s trusted, always on, secure, with the most liquidity.” Sharplink resumed its Ethereum buying in late June, scooping up 10,000 ETH worth around $16 million.

Despite these bullish fundamentals, ETH prices have retreated this week. The asset fell from a seven-week high of $1,950 on Wednesday to $1,860 in early Asian trading on Friday morning, losing almost 3% on the day. However, it remains up 12% over the past 30 days. ETH needs to reclaim the $2,000 psychological barrier to measure further momentum.

Source: https://cryptopotato.com/ethereum-eth-is-cheap-but-not-at-bottom-yet-analysts/