The post Ethereum at $3K – Is ETH now overpriced or undervalued? appeared on BitcoinEthereumNews.com.

Risk assets are stuck between a market bottom and a top. From a technical perspective, this makes sense. Usually, top-caps show a clear directional bias after about five weeks of sideways trading. What about this cycle though? The market is past seven weeks, and there’s still no confirmed move. Consequently, the stakes are rising as top-caps push deeper into leveraged liquidity. However, Ethereum [ETH] appears to be caught in its own internal tug-of-war. Notably, that $3k-level is now starting to look like a real test. ETH shows scalability gains amid institutional headwinds No doubt, Ethereum flipped the script in Q4, posting -28.28% returns. In fact, this was ETH’s weakest quarter versus Bitcoin [BTC] since the 2019 cycle. Given that backdrop, it’s not completely unreasonable to see why some are calling Ethereum’s latest round of upgrades a “failure.” However, the on-chain data tells a different story. Smart contract deployments on Ethereum just hit a record 8.7 million, while average transaction fees dropped to around $0.17 – Marking a massive shift from pre-upgrade levels. Source: EtherScan To put that into perspective, ETH fees spiked to nearly $200 back in 2022.  Since then, however, fees have stayed in a clear downtrend, even after a jump to $8.48 following the October crash that triggered a market-wide liquidation event. Sure, at first glance, that might raise scalability concerns. However, the data suggested otherwise. Ethereum recently hit 2.2 million daily transactions, showing the network can push higher throughput without kicking fees higher. Bottom line? The upgrades clearly weren’t a failure. And yet, institutional flows are still leaning against Ethereum. Naturally, with fundamentals improving but price action lagging, the “undervaluation” case starts to make sense. Put simply, the market isn’t fully pricing in the “dip.” However, what if institutions have a reason to stay out? Ethereum’s technical…

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Filed under: News - @ January 2, 2026 8:28 pm