Cryptocurrency analytics firm CryptoQuant has suggested that Ethereum may have bottomed against Bitcoin, which could signal the start of a new altcoin season.
According to CryptoQuant, the ETH/BTC price ratio is up 38% in the past week, recovering from the lowest level since January 2020. This ratio historically marks relative lows for Ethereum and is seen as a harbinger of periods when altcoins outperform Bitcoin.
The company’s analysis claimed that Ethereum had entered the extremely low valuation zone compared to Bitcoin. In particular, the ETH/BTC MVRV metric fell to such low levels for the first time since 2019. CryptoQuant recalled that similar situations occurred in 2017, 2018 and 2019, and after these periods, Ethereum gained strongly in value compared to Bitcoin.
According to analysis, demand for Ethereum is increasing while selling pressure is decreasing. The ratio of ETH’s spot trading volume to BTC has increased since last week and reached 0.89. This level stands out as the highest rate seen since August 2024. This shows that investors and traders’ interest in Ethereum has increased again.
Chart showing the ETH/BTC ratio over history.
There has also been a noticeable increase in ETF investments in Ethereum. Since the end of April, ETH purchases have accelerated through ETFs. This increase reinforces the expectation that Ethereum will outperform Bitcoin in the coming period. CryptoQuant points to recent scaling updates and a more positive macroeconomic environment as possible reasons for this interest.
Finally, according to the analysis, the significant decrease in the amount of ETH sent to exchanges compared to BTC indicates that the selling pressure on Ethereum has decreased. The ETH exchange inflow rate has fallen to its lowest level since 2020, indicating that Ethereum currently has a stronger stance than Bitcoin.
*This is not investment advice.
