CryptoQuant CEO says Ethereum is undervalued by 60%

CryptoQuant CEO Ki Young Ju maintains Ethereum is undervalued based on a multi-model analysis from ETHVal that places the cryptocurrency’s composite fair value near $4,535, roughly 60% above spot levels.

ETHVal aggregates 12 valuation approaches built by contributors from academia and traditional finance, assigning each a three-tier reliability score. Most models land above $4,000. A Metcalfe’s law method sits at the high end around $9,534, while lower-end positive outputs include MC/TVL Fair near $3,523 and a Staking Scarcity estimate around $3,496. Two models fall below spot: a Revenue Yield view near $1,434 and a Price-to-Sales (25x) gauge around $923.

Models tied to broader network use and balance-sheet effects come in higher. The App Capital framework-which factors in stablecoins, fungible tokens, NFTs, tokenized real-world assets, and bridged assets-values ether near $4,921. An L2 ecosystem metric is around $4,716.

Price action diverged from the models’ outputs, with ether down about 5% over the past 24 hours. Inflows to US spot ether exchange-traded funds continued on Friday, totaling about $76.55 million and exceeding the $71.37 million seen in spot bitcoin ETFs the same day.

Derivatives activity has been expanding, with ether futures open interest rising and trading growth recently outpacing bitcoin and solana futures. On the supply side, exchange-held ether reserves are at an all-time low.

ETHVal blends the 12 model outputs into a single composite that currently stands near $4,535. Ju shared the figures in a recent update and attributed the underlying methodologies to trusted domain experts.

As we reported earlier, ether tested $3,000 as its daily chart formed a falling wedge, with price action tightening after a two-month decline and a drawdown that left the token nearly 40% below its 2024 high following a broad selloff and billions in liquidations.

The next network upgrade, Fusaka, slated for Dec. 3, includes peer data availability sampling, verkle trees, more predictable blob fees, and history storage changes. On technicals, ether trades below its 50- and 100-day averages; MACD crossed higher, RSI neared 50, resistance sits near $3,500 and support around $2,635.