According to a report from Jinse Finance, a new report from CryptoQuant states 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) metric, which is a relative valuation indicator used to gauge market sentiment and historical trading patterns. Historically, whenever this metric reaches similar low levels, ETH has achieved significant gains and outperformed BTC substantially.
CryptoQuant believes that investors seem to have noticed this. As demand for ETH ETFs has surged sharply, the holding ratio of ETH/BTC ETFs has increased significantly since the end of April. This shift in allocation suggests that institutional investors expect ETH to outperform BTC, potentially 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 bottomed, and the 'altcoin season' may arrive soon.
