Bitcoin and altcoins have experienced sharp declines since last October. With $BTC falling to $57,000 and Ethereum to $1,400, investors are now eagerly awaiting an upward trend.
At this point, as investors closely monitor the data, CryptoQuant analysts have shared their latest analysis for Ethereum.
According to a recent report from the on-chain analytics platform CryptoQuant, Ethereum is cheap, but the data suggests the bottom hasn’t been reached yet.
According to CryptoQuant analysts, $ETH has fallen to more attractive valuation levels compared to Bitcoin. However, the analysts note that despite the price drop, a classic “capitulation” (complete surrender) has not yet occurred in the market, and therefore it is too early to say that the bottom formation is complete.
The report states that Ethereum’s valuation ratios against Bitcoin have fallen to historically low levels, which could present a significant opportunity for long-term investors. However, on-chain data suggests that Ethereum has not yet bottomed out.
The report initially stated that $ETH was trading below its cost basis. At this point, $ETH is trading around $1,900. This is approximately 17% below the actual price of $2,304, placing it in the lower half of the current price range.
According to analysts, this region has historically been associated with market lows and asymmetric rallies.
Secondly, $ETH has undergone a shift from an overvalued position relative to Bitcoin to a generally neutral one. The $ETH/$BTC MVRV ratio peaked around 0.95 in August 2025 and has since fallen to approximately 0.65.
However, the MVRV ratio remains above the ~0.45 threshold relative to Bitcoin, marking previous $ETH lows.
Thirdly, relative selling pressure is decreasing. The $ETH/$BTC inflow rate has fallen from above 1.5 in August 2025 to approximately 0.8, reducing downside risk. However, it still remains below the ~0.4 low selling pressure zone seen at previous lows.
Fourth, institutional demand is reversing direction for the first time in a year. The $ETH/$BTC ETF asset ratio fell from ~0.20 in August 2025 to ~0.115 in June 2026. During this period, institutional investors preferred Bitcoin over Ethereum. However, from the end of June, the ratio rose to 0.13. This data shows that institutional investors’ interest in Ethereum is starting to increase again. However, it is still at a low level in terms of supporting $ETH’s rise.
Analysts also added that on-chain data showed that investor panic selling was not as intense as in past bear markets.
Finally, it’s important to remember that whether Ethereum bottoms out isn’t solely influenced by on-chain data; macroeconomic developments can also play a significant role. Factors such as the Fed’s interest rate policy, dollar liquidity, and ETF inflows also have a major impact on the price.
*This is not investment advice.
