Fidelity Report: Ethereum Is a Buy After 45% Crash

As Bitcoin surges, Ethereum’s price action remains sluggish and unable to match its 2021 peak.

Amid investor concerns over ETH’s performance, Fidelity Digital Assets has released a report labeling Ethereum as undervalued and ripe for accumulation.

On-Chain Metrics Suggest Market Bottom for ETH

Fidelity analysts highlighted that Ethereum’s first-quarter performance was poor, with the asset losing 45% from its January high of $3,579. A bearish “death cross” pattern formed in March, raising short-term caution. Yet, the firm sees medium-to-long-term strength building.

Key on-chain signals support this thesis:

The MVRV Z-Score dropped to -0.18 on March 9, entering a range historically linked to market bottoms and undervaluation. The Net Unrealized Profit/Loss (NUPL) metric hit 0, showing that most holders now sit at break-even or losses—often a signal of market capitulation.

These patterns often appear near local bottoms, according to the report, which positions ETH as a high-potential play despite its underwhelming start to 2025.

More Volatility Possible Before Recovery

Although Fidelity sees signs of a turnaround, it also cautioned that historical data suggests further downside risk remains. Weak hands may continue selling, leading to temporary dips before a broader recovery sets in.

In summary, Ethereum’s recent struggles may offer long-term investors a chance to accumulate at a discount—if historical patterns hold.

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