ETH has calmly slid into historically rare territory as a market signal shows its deeply underrated compared to Bitcoin (BTC), in a relationship that has not been seen since 2019, a new cryptoquant report said.

The signal comes from Ethereums ETH/BTC market value to realized value (MVRV) metric, a meter of relative valuation measuring market atmosphere and historical trading patterns.

Historically, every time this indicator has reached similar low levels, ETH has subsequently delivered significant gains and significantly surpassed BTC.

Investors appear to be aware. The demand for ETH ETF is strongly picked up, with ETH/BTC ETF Holdings relationship increasing steeply since the end of April, according to data from cryptoquant.

This shift in allocation suggests that institutional investors expect ETH to surpass BTC, potentially driven by the recent pectra upgrade or a more favorable macroeconomic environment.

Already, the ETH/BTC price ratio has been rebounded 38% from its weakest level since January 2020, suggesting that investors and dealers are betting that the bottom is in and an “all -season” could soon follow.

This repeats what some market participants have told Coindesk.

March Zheng, general partner for the bizantian capital, said in a recent announcement that dealers must remember that ETH has typically been the most important on-chain Altcoin indicator of risk-on, and its significant Upticks generally lead to wider Altcoin rallies.

Data on the chain further supports this optimism. ETH Spot Trading Volume compared to BTC rose to 0.89 last week, the highest since August 2024, which signaled renewed appetite from investors. A similar trend occurred between 2019 and 2021 when ETH continued to surpass BTC by four times.

Cryptoquant also notes that ETH exchange deposits, often an indicator of sales pressure, have dropped to their lowest relative level since 2020, suggesting that investors expect higher prices ahead.

Currently, the confirmation of ETH is of a crucial break over the most important 365-day sliding average against BTC.

Still, with convincing underestimation, rising institutional interest and diminished sales pressure, ETH occurs for significant upside in the coming months.

But one thing that is still hanging on is network activity as cryptoquant marked in a prior report. Without more people using Ethereum, it will be difficult for token’s price to lift and go towards the moon.