Kate Young, a DeFi analyst recently ran a fundamental analysis on Ethereum. Kate used the launch of ETH 2.0 to project the price of the crypto asset. According to Kate, the valuation of Ether in the future depends on a successful merge of Ethereum.
ETH proponents who staked their tokens for the merger strongly believe the coin will soar above $2000 in the coming months. Interestingly, the average staking price for Ethereum for the ETH 2.0 launch was $2,375. ETH advocates now strongly believe the price of their valued asset is well below the “waters” and the only way from here should be up.
With Ether currently valued at $1065, a bulk of the Ethereum stakers have accumulated an unrealized loss of 56%. Additionally, over 10% of ETH’s supply is locked in the ETH 2.0 deposit contract.
Is ETH Undervalued?
In her analysis, Kate Young admitted that it is impossible to predict the exact bottom for Ethereum. However, the historical price action of the asset proves it is currently trading at a discount.
Ethereum is now 78% below its all-time high. This will not be the first time the crypto asset will be deviating so far from its ATH. Following the 2018 market crash, Ether traded 90% below its peak value. Eventually, the currency recovered, reaching its former all-time high, and soaring well above $1200 in 2021.
Holders of Ethereum will be hoping to see the asset recover in a similar fashion after its recent bear run. Perhaps, the completion of the ETH 2.0 merge will be a trigger for the asset’s value to soar again.
Aside from possible positive price action, the completion of ETH 2.0 will have a positive impact on the energy industry. With ETH 2.0, the Ethereum network will utilize the proof-of-stake consensus, rather than proof-of-work. This upgrade will supposedly reduce the energy consumption rate on the network.
