ETH's valuation against BTC has reached a six-year low, is the 'Altcoin Season' approaching?
According to the latest data released by CryptoQuant in May, the market capitalization to realized value ratio (MVRV) of ETH relative to BTC has fallen to its lowest level since 2019, indicating that ETH may be severely undervalued in the current cycle.
Historically, whenever this indicator drops to similar lows, ETH is likely to experience a strong rally shortly after, significantly outperforming BTC in the medium to short term.
Meanwhile, the holding structure at the ETF level has also begun to change: since the end of April, the holding ratio of the ETH/BTC ETF has rapidly increased, indicating that institutional investors' expectations for ETH's performance are rising, possibly influenced by the progress of the Pectra upgrade and the improving macro environment.
On-chain data shows:
ETH selling pressure has significantly eased
Network trading volume is rising
Technical indicators are triggering rebound signals
Currently, the ETH/BTC price ratio has rebounded 38% from its low in January 2020. CryptoQuant points out that more and more investors and traders are betting: ETH has bottomed out and reversed, and the 'Altcoin Season' may be just around the corner.
If you're still hesitating, you might miss the start of this market trend.
