Ethereum, an Undervalued Gem at $2200?

While Bitcoin started 2023 with an explosive surge of over 140% since January, Ethereum remains lagging behind. However, despite solid fundamentals, ETH is still trading 54% below its all-time high. Undervalued, it could soon catch up and take off.

Ethereum in Bitcoin’s Shadow

Since the rally began in mid-October, Ethereum has seen a growth of about 30%, significantly less than the astronomical gains of Bitcoin which has jumped by 55%. Observers have noted that Ethereum has not benefited as much as its counterpart from the hype surrounding Bitcoin spot ETFs. 

Nevertheless, the fundamentals of the Ethereum network remain impressive, as Ryan Sean Adams of Bankless reminded us yesterday: with its annualized profits of $2.7 billion and its price-to-earnings ratio of 98 – even surpassing Amazon’s 75 – the current price of $2200 appears “laughable”.

Moreover, since the merge in September 2022, ETH has embarked on a deflationary trajectory, with a supply reduction of over 293,000 units according to Ultra Sound Money. 

In addition, the attractive remuneration of 5.3% promised to validators for staking makes Ether the “internet bond”. The asset also ticks the ESG boxes with its energy-efficient proof-of-stake mechanism.

Upcoming Growth Drivers on the Horizon

Beyond these solid fundamentals, Ethereum can also soon count on new catalysts. An Ether-backed ETF is likely in 2024, potentially attracting billions of dollars.

Some are even already predicting a rally towards $10,000. It is thus the ideal time to buy before the actual rise begins.

Therefore, with impressive fundamentals and bullish catalysts on the horizon like a possible spot ETF, Ethereum has great potential. Its current price reflects a clear undervaluation. A surge to new heights seems feasible in 2024.