BlockBeats news, on May 17, a new report from CryptoQuant stated that ETH has quietly fallen into a historically rare range, as a market signal indicates that ETH is severely undervalued compared to BTC. This signal comes from the Ethereum ETH/BTC market value to realized value (MVRV) metric, which is a relative valuation indicator used to measure market sentiment and historical trading patterns. Historically, whenever this metric reaches a similar low level, ETH tends to realize significant gains and greatly outperform BTC. CryptoQuant believes that investors seem to have noticed this. With the demand for ETH ETFs sharply rising, the holding ratio of ETH/BTC ETFs has significantly increased since the end of April. This shift in allocation suggests that institutional investors expect ETH to perform better than BTC, possibly 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 out, and the “altcoin season” may be coming soon.
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