Ethereum prices revisited the four-figure territory again this morning following a minor pullback that threatened heavier losses. Some on-chain metrics are suggesting it is still undervalued even after its recent rally.
ETH prices slid back to $850 within six hours but did not remain there long. At the time of press, Ethereum prices were battling to hold on to the $1,000 level.
Industry commentator Alex Saunders tweeted his bullish prospects for Ethereum making new all-time highs.
Other analysts and observers have suggested that the real monetary fundamentals for Ethereum have yet to kick in. Additionally, one metric is also suggesting that the asset has further to go.
Ethereum Still Undervalued
According to the latest Glassnode Insights report, Ethereum spent less than one month in the four-figure territory before entering a painful bear market that lasted two and a half years.
“However, on-chain signals suggest that we are still in the earlier stages of a bull market, relative to the same price levels in 2018.”
The report analyzed the Market Value to Realized Value (MVRV) ratio which is the relationship between market capitalization and realized capitalization. The metric, created by David Puell and Murad Muhmudov, gives an indication of when the traded price is below a ‘fair value.’
Glassnode stated that the MVRV ratio is still extremely low relative to early 2018 when the price was equivalent to current levels.
When the ratio was this low previously, in the lead-up to the 2017 bull run, ETH prices were still below $25.
“This indicates that in the current market, there is room for significant further growth before ETH becomes overvalued.”
New Highs in Sight
As we’ve seen countless times before, Ethereum has yet to fully decouple from the movements of Bitcoin, so its next move is likely to follow along.
On the downside, there is immediate support in the mid-$800 range and even heavier support around $725 where ETH consolidated for nearly a week.
Another leg up could meet resistance at $1,230 where previous weekly candles closed. At current levels, Ethereum is just under 40% away from a new all-time high.