Ethereum is experiencing a surge in network activity, reaching all-time highs in transfer counts despite price consolidation around $2,100-$2,200. This divergence is attracting analyst attention, suggesting potential undervaluation. A key driver of this activity is the increasing use of AI agents, which are burning ETH at a rate exceeding expectations due to their continuous, high-frequency transactions under the EIP-1559 mechanism. The Capriole Macro Index Oscillator indicates Ethereum is currently undervalued, a signal not seen since 2022, with the MVRV ratio also suggesting a potential cycle bottom. Recent positive ETF inflows remain modest. Expanding financial access in Africa is also being facilitated through a partnership between VALR and Onafriq, enabling mobile money funding for crypto wallets. However, some analysts, like Jiang Zhuoer, remain bearish, opening short positions based on geopolitical concerns and anticipating further market declines, citing the US-Iran conflict as a potential catalyst.
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