Ethereum: Its MVRV ratio approaches the overvaluation zone, warns CryptoQuant
18:10 ▪ 5 min read
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Can Ethereum dominate the bull? That is a question that troubles more than one investor. Because behind its recent surge lies a very real but equally fragile change. The second cryptocurrency in the market has chained returns to almost touch its all-time high. And yet… despite the enthusiasm, discreet but powerful signs hint at a possible calm. Is the bull tired?
In summary
The Ethereum/Bitcoin ETF ratio rose from 0.05 to 0.15 between May and August.
Ethereum outperformed Bitcoin in weekly spot volume for four consecutive weeks.
The MVRV ETH/BTC ratio reaches 0.8, near a threshold that indicates historical overvaluation.
ETH inflows on platforms exceed those of Bitcoin, signs of profit-taking.
ETFs mark Ethereum's time: a ratio that explodes
It's a rise that doesn't go unnoticed: the ETH/BTC ratio of crypto ETFs has tripled in three months, according to CryptoQuant. Translation: institutional investors, who still favored Bitcoin, now seem to be betting more heavily on Ethereum. In August, this ratio rose from 0.05 to 0.15, indicating a massive allocation transfer within portfolios.
Another strong indication: Ethereum recently reached $4,743, its highest since 2021, nearing its historical record. At the same time, the ETH/BTC price ratio surpassed its 365-day moving average, an indicator that, historically, announces phases of outperformance for ether.
