I think the reason people think ETH should be valued more than this is from the fact that there's so much money locked in ETH ecosystem as TVL in a project that's big like AAVE and so on yet the project is underperforming compared to lesser TVL projects like SUI and some others.

Personally I also wonder why ETH is so undervalued like this, the past quarter has proven that ETH even having a hard time breaking through $4k and just go down afterward unlike BTC and some other cryptos.

maybe people just didn't judge an L1 worth from TVL anymore, or ETH's FDV might be considered too big in the eyes of the investor.