Analyst believes ethereum is ‘massively undervalued’.
The all-time high (ATH) price of Ethereum has surpassed $4,440.
At the time of writing, ETH was still trading around $4,300.
? Ethereum: 5 Events That Could Be Factors
Davis made some important points on Ethereum’s application on social media sites. Reddit’s community coins are launching on the Ethereum platform not long ago.
Reddit recently hinted about the launch of NFT. There are currently “430 million monthly active users” in Davis’ group who are likely to debut on the Ethereum platform.
Similarly, he predicted that Twitter’s NFT platform will require “Ethereum-based verification.”
Also, don’t forget that TikTok has already released its creator-led NFT collections.
Davis predicts that Facebook will make another announcement along these lines in the near future. For its next metaverse plans, it may adopt a “multichain” strategy.
However, Facebook’s NFT intentions may offer Ethereum a new impetus in the near future.
Furthermore, from the perspective of Ethereum, the adoption of Facebook’s Novi wallet are high priority.
? NFTs and ETFs: Ethereum is Massively Undervalued
An industry achievement is the introduction of Bitcoin ETFs.
Naturally, Davis and other investors believe that an ETH ETF will be launching soon. This contributes for analyst to believe ethereum is ‘massively undervalued’.
It is noteworthy that Canada has high acceptance of both Bitcoin and Ethereum ETFs.
According to Davis, it has the potential to be the next big thing in the U.S. market.
Ethereum had outflows for a third consecutive week, reaching $1.4 million as of 25 October, according to CoinShares’ weekly report. Regardless, ETH’s institutional interest remains robust.
JP Morgan researchers previously stated that institutions prefer Ethereum to Bitcoin. Additionally, Davis stated that a variety of different actors, ranging from public firms to private funds, and so on are considering Ethereum as an investable asset.
Additionally, as demand has increased, the total quantity of Ethereum on central exchanges has decreased by 18%. This is nearly 4 million ETH. And this trend began just five months ago.
? ETH Outperforms BTC
Since the second half of October, ETH has surpassed BTC by nearly 20%. After exceeding all-time highs last week, ETH retested the April 2021 highs as support.
According to data from Laevitas.ch, the put-call ratio is 0.913 and funding rates are increasing.
These two indicators suggest that traders are anticipating further upside.