The 2025 first-quarter Fidelity Signals Report indicates Ethereum’s market value might be under its potential.
According to the report, technical indicators and network data provide crucial insights that shouldn’t be ignored by stakeholders.
Indicators Suggest Buying Opportunity
Fidelity emphasizes a 45% drop in Ethereum’s price since its peak in January, noting the emergence of a classic “death cross” in March when the 50-day simple moving average fell below the 200-day average. While this configuration signals short-term weakness, some indicators highlight strong long-term potential.
Specifically, the MVRV Z-Score at -0.18 suggests Ethereum’s market price is under its true value. This metric is widely used to identify “bottom regions.” Therefore, this value is interpreted as a promising signal that Ethereum 
$1,807 is currently undervalued.
Additionally, Ethereum’s market cap ratio against Bitcoin 
$94,948 stands at attention-grabbing levels. Mirroring values close to those of 2020, this ratio has followed a downward trend from late 2022, showing sustained weakening over the past 30 months. This situation is a strong indication of Ethereum’s underperformance compared to BTC.
Network Activity and Technological Improvements
The report also elaborates on user interactions within the Ethereum network. With the growth of Layer-2 solutions, there has been a notable rise in interaction. By the end of the first quarter of 2025, the total number of users engaged with the network reached a record-breaking 13.6 million. This increase signals a deepening of Ethereum’s infrastructural strength.
Another noteworthy development is Ethereum surpassing the 12-hour Ichimoku Cloud indicator. This technical signal is promising as it suggests the beginning of an upward trend. Such a technical improvement, observed for the first time since December 2024, may boost investor morale.
The Fidelity report also covers the Net Unrealized Profit/Loss (NUPL) ratio. Its neutral point position by the end of the first quarter indicates a market under heavy selling pressure, suggesting investors are neither profiting nor losing significantly—pointing to a neutral, possibly slightly pessimistic market stance.
The report warns investors about the deteriorating macroeconomic environment. Factors such as global economic uncertainties, interest rates, and regulatory risks may apply short-term pressure on Ethereum prices. As a result, Fidelity advises investors to be prepared for short-term volatility.
In the overall perspective, the report highlights Ethereum’s strong long-term potential while advising caution about imminent risks. Although Ethereum might be nearing bottom levels, a smooth path is not guaranteed immediately.