Ethereum ( ETH ) is undervalued by 58%? Analysis claims that $4,800 is the reasonable value.

Source: TokenPost Original Title: Ethereum(ETH), undervalued by 58% compared to fair value… “$4,800 level is reasonable” Original Link: https://www.tokenpost.kr/news/cryptocurrency/309750

Market Analysis

According to the analysis by the crypto market data company CryptoQuant, Ethereum (ETH) is currently trading at a price that is significantly undervalued compared to its fair value.

The CEO of CryptoQuant,周期英, stated that among the 12 commonly used valuation models, ETH is shown to be undervalued in 9 of those models. The “fair value” of ETH calculated based on these 12 models is approximately $4,836, which is over 58% higher than the market price at the time of the report.

This data indicates that the current market price may not reflect the true value of the asset.

Model Credibility

The valuation models used in this analysis are categorized into three levels of credibility, with eight models receiving a “moderate or higher” trust level of 2 and above (. The CEO of Cycle Ying explained: “These models are constructed by credible experts from academia and the traditional finance sector.”

Market Meaning

This analysis may provide an opportunity for institutional investors to focus on the potential value of ETH. Particularly in the context of growing expectations for ETF approvals and ecosystem expansion, if the current price is in an excessively downward state, it may offer buying opportunities for investors.

Key Points

Market Interpretation: ETH shows undervaluation in multiple valuation models compared to the current market price. In the long term, a rebound scenario converging to fair value may become the focus.

Strategy Reference: Prices below fair value can serve as a reference for a low-price buying strategy. However, each model's assumptions and credibility need to be individually reviewed.

Terminology Explanation:

• Fair value: The intrinsic value of an asset, which is the theoretical price that market participants can reasonably accept.
• Valuation Model: A method for calculating asset value based on various indicators such as liquidity, on-chain data, mining costs, and network activity.