Ethereum's Gas Usage Outpaces Price Growth Amid Institutional Confidence

Ethereum has reached a significant milestone, with its gas usage outpacing its price growth. This development has sparked discussions about the current valuation of Ethereum, especially given the recent subdued price action. Despite the price weakness, institutional confidence in Ethereum appears to be growing. Whales are making significant moves, and a notable portion of President Trump’s crypto portfolio remains tied to the Ethereum blockchain, indicating long-term confidence in the network.

Two key indicators suggest that Ethereum may be undervalued. First, the Net Taker Volume data shows that sellers are losing momentum, a pattern historically followed by price reversals. Second, despite Ethereum’s price sliding in 2024-2025, on-chain gas usage has remained consistently high. This divergence points to a strong network utility being overlooked by the market. As institutions accumulate and selling pressure weakens, the mismatch between price and real-world adoption becomes harder to ignore.

Ethereum’s fundamentals remain robust, and this could be a rare window where price lags behind real-world adoption. Institutional confidence is growing, with Galaxy Digital depositing 37,500 ETH (worth over $60 million) to Binance, showing active positioning from one of crypto’s most established institutions. Meanwhile, 94% of President Donald Trump’s crypto holdings remain on Ethereum, reinforcing the network’s cultural and political relevance. Regardless of political views, Trump’s reliance on Ethereum keeps it in the spotlight, serving as a confidence signal for investors.

At press time, Ethereum was trading at $1,575, with a persistent downtrend visible since mid-February. The Relative Strength Index (RSI) stood at 39.46, indicating that Ethereum was approaching oversold territory but not quite there yet. The Moving Average Convergence Divergence (MACD) remained in bearish territory, with the signal line above the MACD line. However, the narrowing gap hinted at a potential bullish divergence. While selling pressure remains, consolidation around current levels suggests a possible reversal if buying momentum picks up.