Key Takeaways:
Fidelity Digital Assets’ report said that multiple Ethereum onchain metrics suggest ETH trades at a discount.
The BTC/ETH market cap ratio is at mid-2020 levels.
Ethereum’s layer-2 active addresses hit new highs at 13.6 million.
Fresh data from Fidelity Digital Assets hints at a cautiously optimistic outlook for Ethereum, suggesting its dismal Q1 performance could be an opportunity. According to their latest Signals Report, Ether (ETH) dipped 45% during Q1, wiping out it post-US election gains after peaking at $3,579 in January.
The altcoin posted a death cross in March, with the 50-day simple moving average (SMA) dipping 21% below the 200-day SMA, reflecting bearish momentum. Yet, Fidelity noted that the short-term pain may swing in the altcoin’s favor.
The investment firm pointed out that the MVRV Z-Score, which compares market value to realized value, dropped to -0.18, entering the “undervalued”