Ethereum has gained 50% in the past two weeks, with its price now hovering near $3,730.
While still 23% below its all-time high from November 2021, the renewed momentum is attracting attention from both retail and institutional investors.
Some analysts believe the current rally may just be the beginning.
Ethereum Appears Undervalued by Market Metrics
Despite recent gains, ETH remains behind broader market sentiment.
Glassnode’s MVRV Z-score, which compares market cap to realized cap, shows ETH still far from typical cycle tops.
Although no longer in “bearish” territory, the metric suggests the token is still undervalued.
Compared to Bitcoin, Ethereum also has significant room to catch up.
Over the past 12 months, BTC has rallied 74%, while ETH declined 28%.
This has pushed BTC dominance to historic levels.
Bitcoin Vector analysts argue ETH is “under-owned, undervalued, and in catch-up mode.”
They suggest a rotation into ETH could be building.
The $4,000 mark remains a key psychological and technical resistance.
A clean break above this level could accelerate the rally.
Elliott Wave Forecast Suggests Major Upside Ahead
Technical analysis from XForceGlobal highlights Ethereum’s price movement through Elliott Wave theory.
According to this model, markets move in five waves driven by collective psychology.
Their latest analysis suggests ETH is currently in a third impulsive wave.
If the trend holds, Ethereum could reach around $9,000 by early 2026.
This would likely mark a market peak before another correction.
Onchain Data Supports Long-Term Bullish Outlook
Onchain metrics also reinforce Ethereum’s bullish case.
Currently, over 34 million ETH is staked, representing 28% of the total 120.7 million supply.
This staked amount reflects strong investor conviction and removes tokens from active circulation.
In addition, ETH exchange balances have dropped to just 16.2 million—the lowest since 2016.
Lower sell-side liquidity often supports price appreciation when demand increases.
Recent data shows a 16% rise in ETH held by first-time buyers since early July.
Glassnode analysts view this trend as the first signal of a broader reversal.
Spot Ether ETFs have also attracted over $4 billion in new inflows in the past two weeks.
Ethereum Usage and Capacity Show Persistent Demand
Ethereum’s value depends not just on price but on actual blockchain activity.
Although transaction fees are at historic lows—just 0.0004 ETH per transfer—this reflects efficiency, not inactivity.
Layer 2 scaling solutions have absorbed much of the traffic.
Block gas limits have been gradually increased, with the latest hike occurring in July 2025.
Similar increases in February 2025 and previous years were quickly followed by full blocks.
This indicates latent demand and high utility of the network.
Tuesday’s upgrade seems to be following the same pattern.
Overall, Ethereum continues to operate at or near full capacity, underlining strong and persistent demand.