ETH valuation has entered a historically low zone, is the altcoin season coming?
On May 17, CryptoQuant released a new report: the MVRV indicator of ETH/BTC has fallen into a rarely seen low range, indicating that ETH may currently be severely undervalued.
This indicator is commonly used to measure market sentiment and historical valuation in the crypto market. Data shows that whenever the MVRV indicator drops to similar lows, ETH typically experiences a strong rise thereafter, significantly outperforming BTC.
What's even more interesting is that institutions have also started to quietly take action.
Since the end of April, the proportion of holdings in ETH-related ETFs has been rapidly increasing. CryptoQuant believes this is because investors are reassessing ETH's potential, especially due to the positive impacts of the Pectra upgrade, as well as improvements in the macro environment.
Most importantly, the ETH/BTC price ratio has recently rebounded significantly, indicating that the market is betting — the bottom has been found, and the altcoin season may soon begin.
Is this a true 'undervaluation awakening'? Or just another fake move? Which side are you betting on?
