Cryptocurrency markets have experienced significant fluctuations recently. Ethereum (ETH) has become one of the assets that investors are paying attention to, as some key indicators suggest that this cryptocurrency is undervalued. The MVRV Z-Score indicator used to evaluate Ethereum’s real value has reached a range that usually signals a buying opportunity. Previously, in October 2023, under similar conditions, Ethereum’s price surged by 160%. Additionally, on-chain data indicates that whales, especially after the launch of Ethereum spot ETFs in the US, have significantly bought ETH. Despite market downward pressures, multiple fundamental factors support a medium-term upward trend for Ethereum. One of the upcoming crucial events is the upgrade of Pectra, recently launched on the Spoulia testnet. This update enhances staking efficiency and can smoothen the path for organizational adoption. Technical issues in the Halcyon testnet have caused delays in finalizing this upgrade, but once these challenges are overcome, there is a possibility of increased network activity and attracting new investments. Apart from the Pectra upgrade, Ethereum’s network activity is still on the rise. Over the past week, daily active addresses have grown by about 2.89% and new addresses by 2.96%. User activity increase usually indicates market confidence strengthening and lays the groundwork for a return to the upward trend. Ethereum is currently trading around $2,200 and is below a demand range between $2,500 to $2,400. If this level is reclaimed, the key resistance ahead for Ethereum at $2,750 can serve as a short-term price target. Upon surpassing these levels, Ethereum has the potential to reach $3,200 and even $3,860. On the other hand, Ethereum’s failure to break through the $2,500 to $2,400 range could lead to further ETH price decline to $2,000 or $1,500. However, an increase in whale trading volume and network activity raise the likelihood of an upward reversal. If the trend of large investors’ accumulation continues and the Pectra upgrade is finalized without issues, Ethereum can be expected to show strong performance in the coming months. Visit the real-time digital currency price page to monitor all token and cryptocurrency prices live.
