ETH has quietly slipped into a historically rare territory because a signal of the market shows that it is deeply undervalued compared to Bitcoin (BTC), in a report indicated since 2019, according to a new cryptocurrency.
The signal comes from the metric of the market value of the ETHEREUM ETH / BTC to the value achieved (MVRV), a relative evaluation gauge which measures the feeling of the market and the historic trading models.
Historically, each time this indicator has reached similar levels, ETH later delivered significant gains and considerably surpassed the BTC.
Investors seem to take note. The demand for ETH ETF has resumed strongly, the ETH / BTC ETF Holdings report increased sharply since the end of April, according to Cryptokant data.
This change of allowance suggests that institutional investors provide that ETH will surpass the BTC, potentially fueled by the recent Pectra upgrade or a more favorable macroeconomic environment.
Already, the ETH / BTC price ratio has rebounded 38% compared to its lowest level since January 2020, suggesting that investors and traders bet the bottom and an “Alt season” could soon follow.
This echoes that some market players said to Coindesk.
March Zheng, general partner of Bizantine Capital, said in a recent message that traders should remember that ETH has generally been the main Altcoin chain indicator for risk, and its significant increases generally lead to broader Altcoin rallies.
The chain data also supports this optimism. The trading volume of ETH spots compared to the BTC increased to 0.89 last week, its highest since August 2024, reporting a renewed appetite for investors. A similar trend occurred between 2019 and 2021, when the ETH surpasses the BTC by four.
Cryptochant also notes that ETH exchange deposits, often an indicator of sales pressure, have fallen to their lowest relative level since 2020, which implies that investors anticipate higher prices to come.
For the moment, confirmation depends on the ETH decisively above its mobile average at 365 days against the BTC.
However, with convincing undervaluation, an increase in institutional interest and a drop in sales pressure, ETH seems to be positioned for a significant increase in the coming months.
But one thing that ETH is always lagging behind is the activity of the network, because the cryptocurrency reported in a previous report. Without more people who use Ethereum, it will be difficult for the price of the token to take off and go to the moon.
