Ethereum may have reached a pivotal turning point against bitcoin, signaling the potential start of an “Alt season,” according to a recent Cryptoquant report. The ETH/ BTC price ratio surged 38% last week after hitting its lowest level since January 2020, with onchain data suggesting reduced selling pressure and growing institutional demand for ether.
Breaking the Bottom: Ethereum’s Metrics Signal Long-Awaited Reversal Against Bitcoin
Cryptoquant researchers report ethereum’s (ETH) relative valuation against bitcoin (BTC) has entered an extreme undervaluation zone for the first time since 2019, based on the ETH/ BTC MVRV metric. Historically, similar conditions in 2017–2019 preceded periods where ETH outperformed bitcoin by wide margins, suggesting strong mean-reversion potential.
ETH’s spot trading volume relative to BTC spiked to 0.89 last week, the highest since August 2024, signaling increased trader exposure. Cryptoquant notes this mirrors 2019–2021 trends, when ETH outpaced BTC by 4x. The surge aligns with ETH’s price rebound, indicating renewed market confidence.
Source: Cryptoquant Analysis
Institutional interest is rising, with ETH ETF holdings increasing since late April. Cryptoquant analysts link this to expectations of ETH’s outperformance, driven by scaling upgrades and macroeconomic factors. The ETH/ BTC ETF holdings ratio and price ratio have risen concurrently, reflecting strategic portfolio shifts.
Exchange inflows for ETH have plummeted to their lowest since 2020, per Cryptoquant’s data, signaling reduced sell pressure versus bitcoin. Lower inflows historically precede ETH rallies, as fewer tokens enter exchanges for potential liquidation.
Despite the latest rally, Cryptoquant analysts caution that the ETH/ BTC ratio must surpass its one-year moving average (MA) to confirm a prolonged upward trend. Current levels mirror past bottoms, but technical validation is critical for long-term momentum. The report states:
The ETH/ BTC price ratio still needs to cross above its 365-day moving average to confirm a new leg up against bitcoin.
