- Prominent trader believes Ethereum is tremendously undervalued.
- Ethereum’s current market price may be lower than its perceived true value.
Ethereum’s Undervaluation According to Prominent Trader
Prominent trader Bob Loukas has expressed his belief that Ethereum (ETH), the second-largest cryptocurrency by market capitalization, is significantly undervalued. Loukas bases his deduction on factors such as usage, adoption, dominance, market cap comparisons, and the technology behind Ethereum. He suggests that ETH may be undervalued compared to its true worth.
This indicates that the current market price of ETH is potentially lower than its actual value. At the time of writing, Ethereum was trading at $1,804, experiencing a 3.68% decline in value over the past day. Despite briefly surpassing the key $2,000 level after the Shapella upgrade in April, ETH remains below that threshold. The recent release of lower-than-expected CPI data resulted in a brief surge to $1,888 on May 10 before a subsequent decline.
Possibility of Ethereum Retesting $1,550
Crypto analyst @TheMoonCarl on Twitter suggests the possibility of Ethereum retesting the $1,550 level if the current correction continues. The analyst identified a Descending Triangle pattern on the Ethereum chart, indicating a potential downward trend. If the pattern breaks down, ETH could retest the $1,550 support level. A descending triangle pattern consists of lower highs and a lower resistance level, typically indicating a bearish signal.
The analysis suggests a potential further downside for Ethereum if the correction persists.
Locked ETH Reaches Record High on Beacon Chain
In other Ethereum-related news, the total number of Ethereum tokens locked on the Beacon chain has reached an all-time high of 19,375,242 ETH. This milestone, accompanied by a total value locked (TVL) of $27.7 billion, represents a significant achievement for the Ethereum network. The increased number of locked Ethereum tokens implies a reduction in the overall supply available in the market.
Locked ETH at ATH. You know what follows? https://t.co/3xS8OoCfT9
— CZ 🔶 Binance (@cz_binance) May 11, 2023
Binance CEO Changpeng “CZ” Zhao commented on this milestone, hinting at the potential for a subsequent price increase for Ethereum. The principle of supply and demand suggests that a decrease in supply, coupled with constant or increasing demand, could lead to a price appreciation for Ethereum.
As of now, Ethereum is trading at $1,823.51, showing a 0.15% gain in the past hour and a 1.29% drop over the last 24 hours.