Summary
- Fidelity interpreted Ethereum's (ETH) weakness in Q1 as a buying opportunity.
- The MVRV-Z score and Net Unrealized Profit/Loss (NUPL) indicators suggest Ethereum is undervalued and in a 'capitulation phase'.
- The number of active addresses on Ethereum Layer 2 has reached a record high of 13.6 million, supporting the optimistic outlook for ETH.
On the 29th (local time), according to the cryptocurrency specialized media Cointelegraph, the global asset management company Fidelity interpreted Ethereum's (ETH) weakness in the first quarter as a buying opportunity.
Fidelity stated in a report, "Despite multiple on-chain indicators, the medium to long-term outlook for ETH remains optimistic," adding, "The MVRV-Z score (an indicator reflecting the gap between market cap and realized market cap) has entered an undervalued zone, and the Net Unrealized Profit/Loss (NUPL) indicator also points to a negative, indicating investor sentiment is in a 'capitulation' phase."
Furthermore, "The number of active addresses on Ethereum Layer 2 has reached a record high of 13.6 million, supporting the optimistic outlook for ETH," it added.
JH Kim
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