Ethereum Trades at 42% Discount to Bitcoin

[Chawla Solutions]

According to a recent analysis by Ecoinometrics, Ethereum is currently trading at a 42% discount compared to its historical correlation with Bitcoin. Using a log-log regression model that tracks the long-term price relationship between the two assets, the study estimates Ethereum’s fair value based on Bitcoin’s price trend — and the current gap is striking.

Over the past decade, Bitcoin and Ethereum have typically moved in tandem, reflecting the broader crypto market’s sentiment and liquidity flows. However, in recent months, Ethereum has lagged significantly, creating what analysts call a “mispricing window.” The model implies that if Bitcoin’s trajectory remains consistent, ETH is undervalued relative to its expected range.

This disconnect may stem from delayed institutional demand for Ethereum, as Bitcoin ETFs already attract massive inflows, while Ethereum’s spot ETF market is still developing. Once these products gain traction, similar capital dynamics could narrow the discount.

For investors, this presents a potential asymmetric opportunity. If Ethereum ETFs start attracting even a fraction of Bitcoin’s ETF inflows, ETH’s price could realign closer to its model-based valuation.

Conclusion:
Ethereum’s current 42% undervaluation could mark one of the strongest long-term accumulation zones in its history. For those who believe in ETH’s institutional adoption story, this discount looks like a golden entry point.