The recent market-wide uptrend that was sparked when Bitcoin broke above $7,000 yesterday has proven to be particularly beneficial for Ethereum, which has posted some massive gains as it continues outperforming BTC and most other major altcoins.
In the near-term, it does appear that this momentum will extend significantly further, as one fundamental indicator shows that ETH is undervalued at its current price and that it will soon rally higher.
This comes as the crypto approaches a critical technical level that bulls need to surmount, with a clean break above this level potentially fueling massive upside.
Ethereum Continues Rallying as Bulls Push It Towards $200
Today’s upswing marks an extension of that which was first incurred on Sunday evening, which is around the time when the crypto began pushing higher in tandem with Bitcoin.
ETH’s buyers, however, have proven to be more zealous than BTC’s, as the crypto has been consistently outperforming the benchmark cryptocurrency and is currently trading up just under 5% against BTC.
Analysts are now noting that the crypto is fast approaching its 200-day moving average, which is a critical level that could determine whether or not this ongoing upswing turns into a full-blown bull rally.
“Ethereum daily – First of the majors to retest MA 200 on this broader move,” one popular analyst noted in a recent tweet.
This technical level, which currently sits around the lower-$170 level, could catalyze some significant momentum – should it be decisively broken above.
Fundamental Data Shows ETH is Currently Undervalued
Glassnode – an on-chain research and analytics group – explained in a recent tweet that Ethereum’s MVRV ratio shows that its current value should be roughly $202, while its market value is significantly below…