According to the latest data from CryptoQuant, the MVRV ratio of ETH/BTC has dropped into the "severely undervalued" zone for the first time since 2019. This is a signal that has previously indicated strong growth of Ethereum compared to Bitcoin in past cycles.
History shows that times when ETH hits low MVRV zones often provide good accumulation opportunities. However, the current recovery outlook may be hindered by increased selling pressure, weak demand, and stagnant on-chain activity.
The current undervaluation zone opens up the possibility of a reversal, but investors need to monitor further fundamental factors before setting expectations for a strong breakout of ETH.
