Is Ethereum Undervalued? Gas Usage Surges as Price Struggles

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Ethereum [ETH] just crossed a milestone — not in price, but in utility. For the first time in its history, Ethereum’s gas usage is outpacing its price growth, sparking renewed debate about the asset’s valuation.

Despite ETH trading near $1,575 at press time, downtrending since mid-February, on-chain fundamentals remain resilient. The RSI stood at 39.46, indicating ETH is nearing oversold territory. The MACD remains bearish, though a narrowing gap suggests a possible bullish divergence.

ETHEREUM SELLERS ARE GETTING EXHAUSTED. $ETH IS SO UNDERVALUED. pic.twitter.com/gyKkzW2qPC
— CryptoGoos (@crypto_goos) April 15, 2025

What’s catching analysts’ attention is the sharp divergence between Ethereum’s utility and its market price. Net Taker Volume data indicates that selling momentum is fading — a trend often preceding bullish reversals. Meanwhile, Ethereum’s gas usage remains high, signaling sustained demand for network operations despite price stagnation.

This could suggest ETH is currently trading below its intrinsic value. As price lags behind real-world adoption, long-term investors may see this as a rare accumulation opportunity.

Adding to the bullish undertone, institutional interest in Ethereum is intensifying. Galaxy Digital recently deposited 37,500 ETH — over $60 million — to Binance, a move interpreted as strategic positioning.

Galaxy Digital deposited another 12,500 $ETH($20.28M) to #Binance 10 hours ago.

Galaxy Digital has deposited 37,500 $ETH($60.4M) to #Binance in the past 4 days.https://t.co/owM3zRHpAx pic.twitter.com/Xbp9yRCEqZ
— Lookonchain (@lookonchain) April 16, 2025

Politically, Ethereum remains a standout. A staggering 94% of former President Donald Trump’s crypto portfolio is tied to Ethereum. Whether one supports Trump or not, his association brings cultural and political weight to the network, reinforcing its mainstream relevance.

Also Read: Solana Surges 20% to $130: Outpaces Ethereum as DeFi Revenue and Accumulation Spike

For investors, these developments serve as confidence indicators. Ethereum is still the preferred platform for developers, institutions, and influential figures alike.

While ETH’s short-term chart remains under pressure, the underlying fundamentals paint a different picture. The market may be underestimating Ethereum’s potential, but the growing divergence between utility and price suggests that a turnaround could be on the horizon.

Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.

Andrew Chen

I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.

Andrew Chen

I'm a crypto enthusiast with a background in finance. I'm fascinated by the potential of crypto to disrupt traditional financial systems. I'm always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.