On-Chain Indicator Suggests Ethereum (ETH) Could Be Undervalued, According to Crypto Analyst

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Daily Hodl2025/04/11 16:00

By:by Daily Hodl Staff

An on-chain indicator suggests that top smart contract protocol Ethereum ( ETH ) could currently be undervalued, according to a popular crypto analyst.

Trader Ali Martinez tells his 135,100 followers on the social media platform X that ETH’s Entity-Adjusted Dormancy Flow just dropped below one million, suggesting that Ethereum may be in the midst of carving a major cycle bottom.

“This historically indicates a macro bottom zone, meaning ETH might be undervalued and long-term holders are less inclined to sell. It also suggests:

• Sentiment is low
• Capitulation may have occurred
• Smart money might be accumulating”

On-Chain Indicator Suggests Ethereum (ETH) Could Be Undervalued, According to Crypto Analyst image 0

Source: Ali Martinez/X

Entity-Adjusted Dormancy Flow is used “to time market lows and assess whether the bull market remains in relatively normal conditions,” according to the crypto analytics firm Glassnode . The metric, which Glassnode says helps clarify whether an asset is in a bullish or bearish primary trend, measures the ratio of a coin’s market cap and its annualized dormancy value tracked in US dollars.

Martinez also notes that 453,000 Ethereum have been withdrawn from crypto exchanges in the past five days.

On-Chain Indicator Suggests Ethereum (ETH) Could Be Undervalued, According to Crypto Analyst image 1

Source: Ali Martinez/X

Large amounts of ETH flowing out from exchanges can serve as a bullish indicator as deep-pocketed investors accumulate the asset.

ETH is trading at $1,558 at time of writing, up over 2% in the last 24 hours.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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