Ethereum Is in One of Its &#039, Deepest Undervaluation Zones in Years &#039,: Bitwise

According to experts at Binary, Ethereum has “one of its deepest undervaluation zones in a long time.”

A statement shared with says the second-largest crypto has been” constantly failing” against Bitcoin since soon 2022, with ETH/BTC principles suffering as a result.

At the time of writing, 1 ETH buys 0.027 BTC—down 47 % over the past 12 months, according to CoinGecko data.

But Bitwise Europe’s head of research, Andre Dragosch, argues Ethereum “is ultimately mispriced relative to on-chain engagement and implementation measures”.

Growing attention in artificial intelligence, post cash and the verification of real-world property have been blamed for ETH’s unsatisfactory performance.

“]These ] regions benefit from lower transaction fees, leaving Ethereum’s frequently congested and costly network at a disadvantage”, the statement says.

Dragosch adds that the increase of Layer 2 expanding solutions “has scattered exercise across many ecosystems, limiting the value immediately captured by Etheruem’s base layer.”

And worse yet, ETH’s “extensive usage as a buying set across the crypto ecosystem has made it exposed to prolonged downward pressure from arbitrage whenever its price rises.”

Bitwise points out factual data that suggests Ether may be “poised for a possible rebound in February,” given that it has historically secured good returns against BTC in seven of the previous eight years.

Bitcoin has risen by 3.72 % in the year to date. By contrast, Ether has plunged by 20 % since 2025 began.

And while BTC hit a fresh all-time high above$ 109, 000 last month, ETH is yet to surpass a record price of$ 4, 891.70 set back in November 2021.

The divide widens further given Bitcoin’s currently 11 % off its price peak, with Ether now trading at a 46 % discount.

This too has been reflected in the effectiveness of exchange-traded money monitoring ETH’s value.

Data from SoSoValue shows the total net assets in U. S. Bitcoin ETFs now stand at$ 115 billion —5.9 % of this digital asset’s market cap.

The capital locked up in ETH ETFs is a mere$ 10.15 billion by comparison, which equates to just 3.1 %.