Market analytics platform CryptoQuant reports that Ethereum appears to be emerging from a prolonged period of undervaluation relative to itcoin">Bitcoin, with the ETH/BTC price ratio climbing 38% from its lowest point since January 2020. This dramatic recovery from historical lows has historically preceded periods where Ethereum significantly outperformed itcoin">Bitcoin, often triggering broader altcoin rallies. The current ratio levels align with previous ETH price bottoms that marked the beginning of substantial altcoin seasons, though analysts note the metric must break above its 365-day moving average to confirm a sustainable upward trend against itcoin">Bitcoin.
The undervaluation thesis is further supported by Ethereum’s Market Value to Realized Value (MVRV) ratio against itcoin">Bitcoin, which recently touched its lowest level since 2019. Historical precedent from similar MVRV dips in 2017, 2018, and 2019 shows these extreme undervaluation zones were consistently followed by periods of significant ETH outperformance. This pattern suggests Ethereum may be positioned for a substantial mean-reversion rally, potentially setting the stage for the next major altcoin cycle.
Multiple bullish indicators are converging to support Ethereum’s case for outperformance. Trading volume dynamics show ETH’s spot trading volume ratio relative to itcoin">Bitcoin reached 0.89 last week—the highest level since August 2024—indicating increased market participant exposure to Ethereum. This mirrors the 2019-2021 period when similar volume patterns preceded ETH’s 4x outperformance against itcoin">Bitcoin. Additionally, exchange-traded fund flows favor Ethereum, with ETF holdings ratios spiking since late April as investors position for expected relative outperformance driven by scaling upgrades and improved macro conditions.
Perhaps most significantly, Ethereum is experiencing substantially lower selling pressure compared to itcoin">Bitcoin, with exchange inflow ratios falling to their lowest levels since 2020. This reduced sell pressure, combined with faster-growing spot trading volumes and increasing institutional allocation through ETFs, creates a compelling technical setup. The convergence of these metrics—from extreme undervaluation recovery to improved volume dynamics and reduced selling pressure—suggests Ethereum may be on the cusp of triggering the long-awaited altcoin season that traders have been anticipating.
