Fidelity Digital Assets’ latest report suggests that Ethereum (ETH) is undervalued based on multiple onchain metrics, with the BTC/ETH market cap ratio at mid-2020 levels and Ethereum’s layer-2 active addresses hitting new highs at 13.6 million. The report indicates a cautiously optimistic outlook for Ethereum despite its Q1 performance, which saw a 45% dip, wiping out gains made after the US election peak at $3,579 in January. Fidelity noted that while the short-term outlook appeared bearish with a death cross in March, certain indicators hinted at a potential turnaround. The MVRV Z-Score dropped to -0.18, signaling undervaluation, historically indicating market bottoms. The Net Unrealized Profit/Loss ratio fell to 0, suggesting a neutral position for holders. The realized price of ETH, averaging $2,020, remains 10% above its current value, indicating unrealized losses for holders. Despite this, long-term holders seem to be holding firm, possibly stabilizing the base price. Fidelity also highlighted Ethereum’s market cap ratio to Bitcoin, which is at 0.13, reaching mid-2020 levels. Additionally, engagement within the Ethereum ecosystem hit a new high of 13.6 million active addresses interacting with layer 2 networks, showcasing scalability and adoption growth. Unichain, a new layer-2 protocol by Uniswap, led the engagement charge. An anonymous trader noted that ETH price has crossed above the 12-hour Ichimoku cloud indicator for the first time since December 2024, indicating a potential uptrend. This article serves informational purposes only and does not offer investment advice. Investors are advised to conduct their own research before making any financial decisions.