Ethereum (ETH) is showing signs of entering a key undervaluation phase, leading many analysts and investors to speculate whether a long-awaited altseason is just around the corner.
A recent report from market intelligence platform CryptoQuant highlights that ETH’s relative performance against Bitcoin (BTC) has likely bottomed for this cycle. Historically, such patterns have preceded significant rallies in Ethereum and other altcoins.
ETH/BTC Ratio Signals Potential Bottom
Over the past week, the ETH/BTC price ratio has jumped 38% from levels not seen since January 2020. This kind of rebound has historically marked the beginning of ETH outperformance and broader altcoin momentum. However, for a true reversal to take hold, the ratio needs to break above its 365-day moving average.
One of the strongest bullish indicators comes from the Market Value to Realized Value (MVRV) ratio, which dropped to its lowest level since 2019, placing ETH firmly in what CryptoQuant defines as an “extreme undervalued zone.” Similar drops in the MVRV ratio in 2017, 2018, and 2019 were all followed by powerful ETH-led altcoin rallies.
Bullish On-Chain and Market Activity
In addition to the undervaluation signal, Ethereum is seeing a surge in spot trading volume compared to Bitcoin. Last week, the ETH/BTC trading volume ratio reached 0.89, its highest level since August 2024, signaling growing interest and capital rotation into ETH.
This trend mirrors previous cycles—particularly from 2019 to 2021—when increased ETH trading activity preceded a 4x outperformance over BTC.
Moreover, ETH ETF holdings have risen sharply since late April, indicating growing investor confidence in Ethereum’s upside potential. CryptoQuant attributes this trend to anticipated protocol upgrades and a more favorable macro backdrop.
Lower Sell Pressure Strengthens Bull Case
Another key metric working in Ethereum’s favor is reduced sell pressure. The ETH exchange inflow ratio has dropped to its lowest point since 2020, implying that fewer investors are moving ETH onto exchanges to sell. Historically, this has been a reliable signal of strong accumulation and bullish sentiment.
Altseason Incoming?
With Ethereum’s metrics pointing to historical patterns of undervaluation and investor accumulation, market watchers are now closely monitoring whether altseason is on the horizon.
If history repeats, ETH’s recent dip into undervaluation territory could mark the beginning of a broader altcoin breakout, with Ethereum potentially leading the charge.
