Ethereum Reaches Lowest Level Against Bitcoin Since 2020

Ethereum may have reached a decisive turning point compared to bitcoin, according to a recent report from CryptoQuant. The ETH/BTC price ratio increased by 38% last week after hitting its lowest level since January 2020. Does this significant development signal the long-anticipated beginning of a new "altcoin season"? Technical Signal Confirms Trend Reversal Possibility According to researchers from CryptoQuant, Ethereum is currently undervalued significantly compared to Bitcoin. MVRV indicator (Market value compared to Realized value) of ETH/BTC, comparing the current market value with the average buyback value of these two cryptocurrencies, has reached a level not seen since 2019. This detail is very important because the last time this indicator reached such a level, Ethereum subsequently experienced a period of exceptional growth compared to bitcoin. The trading between ETH and BTC is significantly increasing. The volume ratio reached 0.89 last week, a record level since August 2024. Simply put, this means that traders are increasingly positioning themselves on Ethereum rather than bitcoin. CryptoQuant experts have observed an astonishing similarity to the period of 2019-2021, when the relative value of ETH increased four times compared to BTC. Specifically, during that time, the ETH/BTC price ratio increased from around 0.02 to over 0.08, reflecting the significant outperformance of Ethereum compared to Bitcoin. The price of Ethereum has recovered over the past few weeks, a sign that investors are regaining confidence in its potential. At the time of writing this article, the trading price is at $2,347, up 57% in a month. Peter Brandt, a renowned technical analyst, has recently changed his stance on Ethereum, shifting from a bearish outlook to a bullish forecast with a potential target of $4,000. The Interest of Organizations and Selling Pressure Drive Optimism Large institutional investors are returning to Ethereum. What is the evidence? Ethereum ETFs have recorded continuous growth in assets under management since the end of April. This new interest is not coincidental: it coincides with the announcement of major technical upgrades such as EIP-7928, which promises to significantly improve network performance. A particularly encouraging signal comes from CryptoQuant's data on ETH fluctuations: the amount of money flowing into exchanges is at its lowest level since 2020. This data is essential for understanding market dynamics. When there is less ETH on exchanges, it means that holders are less likely to sell their tokens, thereby reducing downward pressure. The ETF holding ratio and the price ratio of ETH/BTC are both increasing, a sign that institutional investors are rebalancing their portfolios in favor of Ethereum. This trend is accompanied by important technical developments such as the recent proposal for implementing parallel transactions on Layer 1, which could fundamentally change the network architecture. However, CryptoQuant analysts remain cautious. To definitively confirm this trend reversal, a major technical barrier still needs to be overcome: the ETH/BTC ratio must exceed the 365-day moving average. Simply put, Ethereum must maintain superior performance compared to bitcoin for a long enough period to confirm this new uptrend cycle. If this condition is met, we could witness sustainable growth of Ethereum in the coming months.