Fidelity pointed out the positive signal in ETH but issued a warning.

Fidelity's cryptocurrency subsidiary Fidelity Digital Assets wrote that the second largest cryptocurrency Ether is trading below its value based on blockchain data.

In the report that examines the cryptocurrency market's first quarter in depth, Fidelity states, "Ether experienced significant fluctuations during this quarter. The price decreased by 45%, which pulled all short-term indicators into negative territory. However, when we look at the data overall, Ether is currently in an interesting position. Although the price has largely declined, the valuation metrics and the network's fundamental data appear quite healthy."

The company stated that the MVRV Z indicator, which is used to analyze market cycles, has settled at a value of 0, indicating that the value of ETH is trading significantly below its price. On the other hand, the NUPL score is also signaling 'capitulation'. This situation indicates that investors have lost hope, started selling their assets at a loss, or exited the market. On the other hand, it suggests that the market is close to a bottom.

"Act cautiously in the short term" warning

Fidelity emphasizes that when looking at the historical trends of Ether's MVRV and NUPL, these scores tend to stay in regions indicating that the price is below its true value for extended periods. According to the investment giant, while this picture is positive in terms of price in the long-term context, short-term investors should still act cautiously.

Published: April 30, 2025 12:58 pm