ETH has silently got into a historically rare territory when a market signal shows its low value depth compared to Bitcoin (BTC), in a relationship not seen since 2019, according to a new cryptocant report.
The signal comes from the ETHC/BTC market value of Ethereum to the metric of the value performed (MVRV), a relative valuation meter that measures the feeling of the market and the historical trade patterns.
Historically, every time this indicator has reached equally low levels, ETH has subsequently delivered significant profits and substantially overcome BTC.
Investors seem to be taking note. The demand of the ETHE ETH has recovered sharply, with the ETC/BTC ETF Holdings relationship, increasing abruptly since the end of April, according to Cryptoquant data.
This change in the allocation suggests that institutional investors anticipate that ETH will surpass BTC, potentially fed by the recent sicking update or a more favorable macroeconomic environment.
The ETH/BTC price ratio has already recovered 38% of its weakest level since January 2020, suggesting that investors and merchants are betting on the bottom and could soon follow an “alternative season.”
This echoes what some market participants have been saying to Coindesk.
March Zheng, general partner of Byzantine Capital, said in a recent message that merchants should remember that ETH has generally been the main indicator of the Risk Chain, and its important increases generally lead to the wider manifestations of Altcoin.
The data in the chain admit this optimism. The ETH trade volume in relation to BTC increased to 0.89 last week, the highest since August 2024, indicating the renewed appetite of investors. A similar trend occurred between 2019 and 2021, when ETH surpassed BTC for four times.
Cryptoquant also points out that ETH exchange deposits often a sales pressure indicator have fallen to their lowest relative level since 2020, which implies that investors anticipate higher prices ahead.
For now, confirmation depends on ETH that breaks decisively above its 365 -day key mobile average against BTC.
Even so, with a convincing undervaluation, an increase in institutional interest and a decreasing sales pressure, ETH seems positioned for a significant increase in the coming months.
But one thing in which ETH is still lagging is the activity of the network, since Cryptoquant marked in an earlier report. Without more people who use Ethereum, it will be difficult for the price of Token take off and go to the moon.
