CryptoQuant: Indicator Shows Future ETH Gains May Outpace BTC, Altseason Could Be Imminent

BlockBeats News, May 17th, a new report from CryptoQuant stated that ETH has quietly dropped to a historically rare range, as a market signal indicates that ETH is severely undervalued compared to BTC.

This signal comes from Ethereum's ETH/BTC market value-to-realized value (MVRV) ratio, which is used to measure a relative valuation indicator of market sentiment and historical trading patterns.

Historically, whenever this ratio has reached similar low levels, ETH has experienced significant price increases and outperformed BTC by a large margin. CryptoQuant believes that investors seem to have taken note of this. With a sharp increase in demand for ETH ETFs, the proportion of ETH held in BTC ETFs has risen significantly since the end of April. This shift in allocation indicates that institutional investors expect ETH to outperform BTC, possibly driven by recent protocol upgrades like EIP-1559 or a more favorable macroeconomic environment.

CryptoQuant suggests 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 on the horizon.