According to BlockBeats news, on May 17, a new report from CryptoQuant stated that ETH has quietly fallen into a historically rare range, as a market signal shows that ETH is severely undervalued compared to BTC.
This signal comes from Ethereum's ETH/BTC market value to realized value (MVRV) ratio, 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 tends to see significant increases and outperforms BTC. CryptoQuant believes that investors seem to have noticed this. With demand for ETH ETFs surging sharply, the holding ratio of ETH/BTC ETFs has risen significantly since the end of April. This configuration shift indicates that institutional investors expect ETH to outperform BTC, possibly 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 hit the bottom, and the 'altcoin season' may be coming soon.
