3 Reasons Ethereum (ETH) is Undervalued: 200 Million Transactions but 30% Price Drop?

Jakarta, Pintu News – Amidst the turmoil of the digital financial markets, Ethereum (ETH) is now at a particularly interesting juncture for global crypto asset watchers. Although its market price has been under considerable pressure throughout the first quarter of 2026, network data shows that growth remains robust and steady. This phenomenon has created a heated debate on whether the asset is undergoing an “undervalued” phase or if it is heading towards a new fair value adjustment in the cryptocurrency market.

1. Massive On-chain Growth vs. 30% Price Drop

Ethereum (ETH) exhibited a significant anomaly where network activity remained high despite its market price undergoing a sharp downward trend. Throughout the first quarter of 2026, the price of ETH recorded a drop of almost 30% amidst the turbulent crypto market sentiment. However, many analysts see this as a strong signal of a discrepancy between the fundamental value and the current market price.

The inflow of liquidity into the ecosystem remains steady, proving that user confidence in the network’s utility remains very high. Data shows that liquidity continues to gather in the Ethereum stack for transaction settlement needs and other on-chain activities. This is pushing the market capacity of stablecoins on Ethereum close to an all-time record high as demand for network usage increases.

• Total Transactions Q1 2026: 200.4 million transactions.
• Weekly Stablecoin Inflows: More than $1 billion.
• Stablecoin Market Cap on Ethereum: Almost $168 billion (around Rp2,873 trillion).
• Dominance of EURC Supply: 82.6% resides on the Ethereum network.

Also Read: 10 Free AI Apps 2026, Can Help Passive Income from Crypto to Stocks

2. Impact of Ethereum Foundation Sale on Market Sentiment

The Ethereum Foundation’s recent capital allocation strategy is starting to put additional pressure on the perception of investors in the cryptocurrency market. The Foundation has just completed their scheduled distribution by selling around 1,250 ETH to obtain stable assets for the team’s operations. This move is done regularly to fund ecosystem development and support long-term sustainable network operations.

While these sell-offs are well-intentioned for technical growth, they have the effect of making market sentiment more conservative and cautious. Most market participants consider these periodic sell-offs as an obstacle to ETH price recovery amid sensitive market conditions. Currently, the Foundation’s holdings of the asset are still very large so potential future sales remain a major concern for traders.

• Latest Sale: 1,250 ETH worth $2.8 million.
• Total remaining ETH balance: 126,438 ETH courtesy of the Ethereum Foundation.
• Estimated Residual Balance Value: $284 million (approximately IDR 4.85 trillion).

3. Low Search Interest and Transition to Fair Value

The level of public interest in Ethereum (ETH) is currently at its lowest level in this 2026 market cycle. Search trend data shows that broad market participation is waning even though technical activity on the network remains positive. This reflects a transitional phase where retail investors are losing confidence compared to institutional players who remain active.

This decline in interest signals that the market may be moving towards more realistic pricing that reflects the existing conditions of participation. Ethereum (ETH) is no longer traded based solely on a speculative “undervalued” narrative for its holders. This shift requires you to be more thorough in conducting fundamental analysis before deciding to add an investment position in the digital asset sector.

Also Read: 5 Ways to Buy Bitcoin as Easy as a $1 Million Gold Ring: A Crypto Guide for Beginners

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*Disclaimer

This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Crypto trading activities are subject to high risk and volatility, always do your own research and use cold hard cash before investing. All activities of buying and selling Bitcoin and other crypto asset investments are the responsibility of the reader.

Reference

• Ritika Gupta/AMBCrypto. Is Ethereum truly undervalued? Strong on-chain growth says yes, but…. Accessed April 13, 2026.