CryptoQuant: Indicators Suggest Future ETH Gains May Surpass BTC, Altcoin Season Could Arrive Soon

On May 17, a new report from CryptoQuant stated that ETH has quietly fallen to a historically rare range, as a market signal indicates that ETH is significantly undervalued compared to BTC.

This signal comes from Ethereum's ETH/BTC Market Value to Realized Value (MVRV) indicator, which is a relative valuation metric used to measure market sentiment and historical trading patterns.

Historically, whenever this indicator reaches similarly low levels, ETH has achieved significant gains and outperformed BTC substantially. CryptoQuant believes that investors seem to have noticed this. With the demand for ETH ETFs rising sharply, the holding ratio of ETH/BTC ETFs has increased significantly since the end of April. This shift in allocation suggests that institutional investors expect ETH to outperform 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 soon arrive.