Is It Bullish Time for Ethereum (ETH)? Fidelity Explained!

The second-largest cryptocurrency by market cap, Ethereum (ETH), continues to lag behind Bitcoin with its weak performance. While Bitcoin (BTC) was racing from record to record, ETH could not keep up with the upward momentum in BTC and has been steadily declining against Bitcoin. While ETH is expected to make an attack like Bitcoin, surpass its 2021 ATH and reach new record levels, Fidelity has published a comprehensive report on Ethereum. Fidelity, one of the giant names in the industry, stated that Ethereum was below its fair value and interpreted ETH’s weakness in the first quarter as a buying opportunity. Related News: 50-Year Analyst Peter Brandt Has Issued a Warning for Ethereum (ETH) This Time! Fidelity Digital Assets noted that multiple on-chain metrics suggest that the ETH price has bottomed and is trading undervalued. Ethereum had a tough first quarter, falling 45% from its January peak of $3,579. ETH also formed a death cross in March, a traditionally bearish technical signal. However, Fidelity noted that despite the short-term downturn, Ethereum is showing bullish signals. “Despite multiple on-chain indicators, we remain optimistic for Etheruem in the medium to long term. On March 9, the MVRV Z-Score, which compares market value to realized value, fell to -0.18, entering undervalued territory. Historically, these levels have signaled market bottoms and potential buying opportunities, suggesting that Ethereum is cheap compared to its fair value. Again, the Net Unrealized Profit/Loss (NUPL) ratio has fallen to 0, indicating that unrealized profits are equal to losses, with a large portion of investors holding ETH at a loss. This is another sign that is often associated with market capitulation and possible bottoms as weak hands sell.” Fidelity noted that the data signaled a bottom and rise for Ethereum, but also warned that past trends suggest further declines are possible before a recovery. *This is not investment advice. Continue Reading: Is It Bullish Time for Ethereum (ETH)? Fidelity Explained!