Ethereum ‘Insanely Undervalued’ As Accumulation Addresses Keep Stacking – Is A Rally Imminent?

According to a recent X post by crypto trader Coinvo, Ethereum (ETH) is ‘insanely undervalued’ at its current price. Several on-chain metrics appear to support Coinvo’s assessment, as ETH accumulation addresses continue to stack the digital asset despite lackluster price performance over the past few years.

Ethereum May Be Due A Rally Soon

Although ETH has risen 8% over the past two weeks, it remains down 43% over the past year, trading around $1,700 at the time of writing. From its all-time high (ATH), Ethereum is down 63.6%, in stark contrast to Bitcoin (BTC), which is trading just 13.7% below its ATH.

Ethereum’s relatively poor performance compared to other major cryptocurrencies has raised questions about its long-term outlook. While Bitcoin benefits from its first-mover advantage and broader institutional adoption, Ethereum faces increasing competition from rival smart contract platforms like Solana (SOL), SUI, and Polkadot (DOT).

Despite prevailing negative sentiment, some analysts believe ETH could be on the verge of a turnaround. Coinvo, for instance, claims that Ethereum is significantly undervalued and could be poised for a massive rally.

The trader shared the following chart leveraging the Market Value to Realized Value (MVRV) Z-score – a metric used to identify potential market tops and bottoms. According to the chart, Ethereum’s MVRV Z-score has now entered the green zone – between 0 and -1 – a range that historically signals a market bottom and possible trend reversal.

Meanwhile, inflows into Ethereum accumulation addresses have surged to historic highs. In an X post, analyst CryptoGoos shared a chart showing record ETH inflows into these addresses in 2025.

​​High inflows to accumulation addresses indicate that long-term investors are actively buying and holding ETH, even during market downturns. This behavior often reflects growing confidence in Ethereum’s future value and suggests a potential bullish sentiment building beneath the surface.

In a separate post, CryptoGoos also highlighted that Ethereum’s exchange reserves are at a multi-year low. Diminishing reserves on exchanges point to reduced selling pressure and a tightening supply, which could strengthen ETH’s scarcity narrative and drive prices higher in the near term.

ETH Holders Not ‘Bullish Enough’

Noted analyst Crypto Rover drew parallels between ETH’s current price action and BTC’s 2021 trajectory. According to the analyst, if Ethereum mirrors Bitcoin’s past performance, it may be on track to reach a new ATH in the coming months.

That said, concerns remain around further decline in ETH’s price if the global macroeconomic situation worsens amid the US President Donald Trump’s looming reciprocal trade tariffs. At press time, ETH trades at $1,754, down 2.1% in the past 24 hours.

Featured image created with Unsplash, charts from X and TradingView.com