title: Ethereum (ETH) Could Currently Be Undervalued, Suggests On-Chain Indicator

Trader Ali Martinez tells his 135,100 followers on the social media platform X that ETH's Entity-Adjusted Dormancy Flow just dropped below one million

Top smart contract protocol Ethereum (ETH) could currently be undervalued, suggests an on-chain indicator.

Trader Ali Martinez says that ETH’s Entity-Adjusted Dormancy Flow just dropped below one million, which might point to a major cycle bottom.

“This historically indicates a macro bottom zone, meaning ETH might be undervalued and LT holders are less inclined to sell. It also suggests:

• Sentiment is low

• Capitulation may have occurred

• Smart money might be accumulating,” says the trader.

This historically indicates a macro bottom zone, meaning ETH might be undervalued and LT holders are less inclined to sell. It also suggests:

• Sentiment is low