Ethereum could have reached a decisive turning point against Bitcoin, according to a recent crypto -friendly report. The ETH/BTC price ratio jumped 38 % last week after touching its lowest level since January 2020. Could this spectacular evolution announce the long-awaited start of a new “Altcoin season”?
In short
- The MVRV ETH/BTC ratio signals a historic undervaluation of Ethereum, comparable to that preceding the spectacular Bull Run of 2019.
- ETH/BTC exchanges have reached a 0.89 ratio, their highest level for 9 months.
- ETH deposits on exchange platforms have dropped to their lowest level since 2020.
Technical signals confirm a possible trend reversal
According to cryptocurrency researchers, Ethereum is currently strongly undervalued compared to bitcoin.
The ETH/BTC MVRV indicator (Market Value To Realized Value), which compares the current market value with the average acquisition value of the two cryptos, has reached a floor level that we had not observed since 2019.
This detail is crucial, because the last time this indicator has affected such levels, Ethereum later experienced an exceptional period of growth against Bitcoin.
Exchanges between ETH and BTC are clearly intensifying. The volume ratio reached 0.89 last week, a record since August 2024. In simple terms, this means that traders are positioning themselves more and more on Ethereum rather than on Bitcoin.
Cryptoquant experts see it as a striking similarity with the period 2019-2021, when the ETH had seen its relative value multiplied by four compared to the BTC.
Concretely, during this period, the ETH/BTC price ratio had increased from around 0.02 to more than 0.08, reflecting a massive outperformance of Ethereum against Bitcoin.
The course of Ethereum has already been rebounding for several weeks, a sign that investors regain confidence in its potential. At the time of writing this article, he traded at $ 2,347, up 57 % in one month.
Peter Brandt, a recognized technical analyst, recently changed his position on Ethereum, going from a downward perspective to an upper projection with a potential objective of $ 4,000.
Institutional interest and the drop in selling pressure fuel optimism
Large institutional investors return massively to Ethereum. The proof? The ETFE ETHEREUM has recorded continuous growth of their assets under management since the end of April.
This renewed interest is no coincidence: it coincides with the announcement of major technical updates such as EIP-7928, which promises to considerably improve the performance of the network.
A particularly encouraging signal comes from data cryptocurrency on ETH movements: transfers to exchange platforms have been at the lowest since 2020. This metric is essential to understand the dynamics of the market.
When fewer eTh arrives on the exchanges, this means that holders are less inclined to sell their tokens, thereby reducing the down pressure on the price.
The asset ratio and the price ratio of ETH ETH/BTC increases simultaneously, a sign that institutional investors rebalance their portfolios in favor of Ethereum.
This trend is accompanied by major technical developments such as the recent proposal for the parallel execution of transactions on Layer 1, which could thus fundamentally transform the architecture of the network.
However, cryptocurrency analysts remain cautious. To definitively confirm this trend reversal, a major technical obstacle must still be overcome: the ETH/BTC ratio must exceed its mobile average over 365 days.
In simple terms, Ethereum must maintain its outperformance against Bitcoin over a period long enough to validate this new bullish cycle. If this condition is met, we could attend a sustained growth phase for Ethereum in the coming months.
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