Most Ethereum valuation models indicate ETH is undervalued: Analyst

💡 DMK Insight

ETH’s current price of $2,995.33 is raising eyebrows, especially with some models suggesting it’s overvalued. Traders need to pay attention to this divergence between market sentiment and valuation models. While many expected ETH to soar past $4,000, this critical model’s warning could indicate a potential correction ahead. If ETH fails to hold above the $3,000 mark, we might see a cascade of selling pressure, especially from those who bought in during the recent bullish run. Keep an eye on the daily chart for any bearish patterns forming, as a break below $2,900 could trigger further downside. On the flip side, if ETH manages to reclaim the $3,100 level, it could invalidate the overvaluation narrative and attract more buyers. Watch for volume spikes around these levels to gauge market sentiment.