Ethereum Holds $1,800 as Valuation Signals “Undervalued,” Eyes $2,000 Breakout
After maintaining constant around the $1,800 level, Ethereum (ETH) seems positioned for a notable price breakout with various technical
Quick overview
- Ethereum is poised for a price breakout, with technical indicators suggesting it may be undervalued after a 45% decline in Q1 2025.
- Institutional interest in Ethereum has surged, with significant inflows into Ethereum ETFs, indicating a shift towards digital assets as a safe haven amid economic concerns.
- On-chain metrics show Ethereum entering an 'undervalued' zone, with signs of capitulation and strong long-term holder activity despite recent price drops.
- Technical analysis suggests a potential target of $2,100 for Ethereum, with a bullish sentiment growing as short traders close positions.
After maintaining constant around the $1,800 level, Ethereum ETH/USD seems positioned for a notable price breakout with various technical indicators and on-chain data pointing to the second-largest cryptocurrency may be undervalued following its poor first-quarter performance.
A recent Fidelity Digital Assets study suggests that Ethereum’s 45% price decline in Q1 2025 would have generated a buying chance. Once valued at $3,579 in January, the altcoin is displaying symptoms of capitulation that usually accompany increasing momentum before wiping out gains following US elections.
Institutional Interest Surges with Record ETH ETF Inflows
Respected institutional demand is one of Ethereum’s most convincing positive signs. Following inflows of $151.7 million the week ending April 25—the largest since February 2025—Spot Ethereum exchange-traded funds (ETFs) had net inflows totaling $64.1 million on April 28.
With Ethereum investment products witnessing net inflows of $183 million last week, this institutional interest stopped an eight-week run of withdrawals. Head of research for Coin Shares, James Butterfill linked this trend to more general economic worries, noting: “We believe concerns over the tariff impact on corporate earnings and the dramatic weakening of the US dollar are why investors have turned toward digital assets, which are being seen as an emerging safe haven.”
The demand for Ethereum ETF reflects BlackRock’s record-breaking IBIT Bitcoin ETF performance, which Monday had an all-time high single-day flow of $970.1 million.
Ethereum’s On-Chain Metrics Signal “Undervalued” Status
For Ethereum, several on-chain indicators show flashing optimistic signals:
- Entering what Fidelity called the “undervalued” zone, the MVRV Z-Score—which measures market value to realized value—dropped to -0.18 in March. Such levels have traditionally marked market bottoms.
- Often a neutral point for holders before a trend reversal, the Net Unrealized Profit/Loss (NUPL) ratio dropped to 0, signifying “capitulation”—where unrealized profits equal losses.
- With its realized price averages of $2,020, Ethereum shows holders risk unrealized losses since it sits 10% over its present worth. This implies, therefore, that long-term holdings stayed strong while short-term holders sold off with just a 3% reduction in realized price against a 45% price drop.
Network Activity Shows Robust Ecosystem Growth
Based on data from DefiLlama, Ethereum is still the most often used layer-1 blockchain with over $51.8 billion in total value locked (TVL). With protocols like Aav (13.5% gain), Lido (12%), EigenLayer (13%), and Ether.fi (12%), this TVL has climbed by about 16% over the past seven days.
While distributed exchanges (DEXs) saw a notable rise in weekly trade volumes, climbing from $9.7 billion to $12 billion, the stablecoin balance of the network has been continuously rising throughout the year despite market downturn, moving from $111 billion to $124 billion.
With the 13.6 million active addresses communicating with one or two layer-2 networks in the Ethereum ecosystem reaching a new all-time high of 74% during the previous week, layer-2 engagement figures are equally astounding.
ETH/USD Technical Analysis Points to $2,100 Target
On the four-hour chart, Ethereum’s price behavior during the past week has created a bull flag formation. Targeting about $2,100—a possible 15% gain from the present price—a four-hour candlestick close above the upper limit of the flag at $1,800 suggests the beginning of an upward surge.
In just two weeks, market mood has changed dramatically; the Fear and Greed Index, which shows investors now have a neutral attitude despite residual economic headwinds, moves from a record-low of 15 to 53.
Based on the token’s volume profile, the most important resistance level to monitor is $1,800; this value area applies to both bulls and bears. ETH could quickly rise above $2,100, hitting a low-volume zone where price might increase without much opposition if bulls land a spot over $1,900 and keep momentum.
Short Traders Close Positions as Price Climbs
Adding to the positive view, data on the futures market indicates that traders closing significant numbers of short positions correspond with Ethereum’s climb. Although ETH price increased 2% over the past 24 hours, open interest in Ethereum futures declined $273 million, implying short traders closing positions instead of performing covering actions.
Should ETH surpass the $1,850 resistance, this decline in short interest may cause a short squeeze and hasten the rally beyond $2,000 in the next days.
Ethereum Foundation Reshuffles Leadership
The price increase matched organizational changes inside the Ethereum Foundation, verifying Hsiao-Wei Wang and Tomasz Stańczak as two new co-executive directors beginning April 28.
The foundation’s board and administration have split apart; the board now serves as a “security council” safeguarding fundamental values and formulating strategic vision. Ethereum co-founder Vitalik Buterin, Ethereum Foundation President Aya Miyaguchi, Swiss attorney Patrick Storchenegger, and Wang—who will link the board and management team—make up the board.
The foundation will center on scaling the Ethereum layer 1, blobs at the layer 2 level, and enhancing user experience over the next 12 months.
Ethereum Price Prediction: Path to $3,000 Possible with Multiple Targets Ahead
Analyzers see Ethereum able to test several resistance levels on its journey higher if present momentum keeps increasing:
- Short-term goal: $2,101.
- Medium-term goals: $2,300, $2,500, $2,800.
- Target long term: $3,000, $4,000, and maybe $4,400.
Although keeping optimistic momentum depends on the $1,800 level, a clear break over $2,000 would validate the positive view and maybe open the path for Ethereum’s advance toward $3,000 in the next months.
“Once ETH confirms its 4H close above resistance [$1,800],” one analyst observed, ” Ether and altcoins will finally get their chance to shine. It’s in my bones, $2,000 ETH approaching quickly.
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