On May 17, CryptoQuant's new report stated that ETH has quietly fallen to a historically rare interval, as a market signal indicates that ETH is severely undervalued compared to BTC.
This signal comes from Ethereum's ETH/BTC Market Value to Realized Value (MVRV) indicator, which is a relative valuation metric used to measure market sentiment and historical trading patterns.
Historically, whenever this indicator reaches similar low levels, ETH has achieved significant increases and significantly outperformed BTC. CryptoQuant believes that investors seem to have noticed this. With the sharp rise in ETH ETF demand, the ETH/BTC ETF holding ratio has risen sharply since the end of April. This shift in allocation suggests that institutional investors expect ETH to outperform BTC, which may be driven by the recent Pectra upgrade or a more favorable macroeconomic environment.
CryptoQuant believes that the current ETH/BTC price ratio has rebounded significantly, indicating that investors and traders are betting that the market has bottomed out and the "Altcoin season" may be coming soon.
