Blue-chip crypto dominance: Why this cycle is different from 2021
- Ethereum gas usage outpaced price growth, signaling undervaluation despite recent price weakness
- Institutional players and political figures like Trump were backing Ethereum, boosting long-term confidence
Ethereum [ETH] just hit a historic milestone — but not the kind you’d expect.
For the first time, ETH’s gas usage is outpacing its price growth, raising questions about its current valuation.
Despite subdued price action, institutional confidence appears to be growing. Whales are making significant moves, and 94% of President Trump’s crypto portfolio remains tied to the Ethereum blockchain.
Is the market overlooking Ethereum’s potential, or is a turnaround on the horizon?
Is Ethereum undervalued?
Two key signals suggest Ethereum may be trading below its true value. First, the Net Taker Volume data shows sellers are losing momentum – a pattern historically followed by price reversals.
Source: X
Second, despite ETH’s price sliding in 2024-2025, on-chain gas usage has remained consistently high.
Source: X
This divergence points to a strong network utility being ignored by the market. As institutions accumulate and selling pressure weakens, it’s becoming harder to ignore the mismatch.
ETH’s fundamentals remain intact, even robust. If anything, this could be a rare window where price lags behind real-world adoption.
Institutional confidence is growing, and so is the political halo
Source: Arkham
Over the past four days, Galaxy Digital has deposited 37,500 ETH (worth over $60 million) to Binance, showing active positioning from one of crypto’s most established institutions.
Meanwhile, 94% of President Donald Trump’s crypto holdings remain on Ethereum, reinforcing the network’s cultural and political relevance.
Source: X
Regardless of where you stand on Trump, his name carries weight, and his reliance on Ethereum keeps it in the spotlight. For investors, this is a confidence signal.
It says Ethereum remains the platform of choice not just for developers, but also for power players betting on longevity.
Ethereum’s price outlook
ETH was trading at $1,575, at press time, with a persistent downtrend visible since mid-February. The RSI stood at 39.46, indicating ETH was approaching oversold territory, but not quite there yet.
Source: TradingView
The MACD remained in bearish territory, with the signal line above the MACD line, though the narrowing gap was hinting at a potential bullish divergence.
While selling pressure remains, consolidation around current levels suggests a possible reversal if buying momentum picks up.
