According to Golden Finance, a new report from CryptoQuant stated that ETH has quietly fallen to a rare historical range because a market signal shows that ETH is severely undervalued compared to BTC. The signal comes from Ethereum's ETH/BTC market value and realized value (MVRV) indicator, which is a relative valuation indicator used to measure market sentiment and historical trading patterns. Historically, whenever this indicator reaches a similar low level, ETH will achieve significant gains and significantly outperform BTC.
CryptoQuant believes that investors seem to have noticed this. As demand for ETH ETFs has risen sharply, the holding ratio of ETH/BTC ETFs has risen sharply since the end of April. This configuration shift 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 sharply, which indicates that investors and traders are betting that the market has bottomed out and the "altcoin season" may soon arrive.
