- Ethereum just printed its most explosive bullish candle against Bitcoin in recent memory.
- Is ETH finally ready to steal the spotlight from BTC?
Ethereum [ETH] is staging a comeback — and it’s not whispering, it’s roaring.
After months of being overlooked and underpriced, Ethereum has exploded out of its $1,800 rut, catching the eye of investors hunting for deep value and momentum in equal measure.
But this could be more than just a relief rally.
According to CryptoQuant, similar breakouts in ETH/BTC have historically preceded Ethereum’s most explosive market cycles.
So, is this the breakout that finally flips the ETH/BTC script once and for all?
Everything rallied, but Ethereum took the lead
The crypto market lit up green as capital surged into risk assets, pushing the total market cap up 5.67% to $3.27 trillion at press time.
While Bitcoin [BTC] stole the initial spotlight by reclaiming its $100k valuation, the real twist came when the rally morphed into Ethereum’s long-awaited underdog resurgence.
This shift is unmistakably clear on the ETH/BTC 1D chart, where a single-day 14.46% surge injected that “much-needed” rocket fuel into Ethereum’s rally, making the market sit up and take notice.
More importantly, this rotation is backed by a significant shift in relative valuations. ETH is now trading at historically undervalued levels compared to BTC – the first such occurrence since 2019.
Source: CryptoQuant
This level is noteworthy because historically, when the ETH/BTC MVRV (Market Value to Realized Value) ratio has been this low, Ethereum has experienced outperformance relative to Bitcoin.
With the ratio currently sitting at 0.37, well below 1, it signals a potential opportunity for Ethereum to “catch up” to Bitcoin’s price action.
The 2019 cycle: A blueprint for ETH’s next move
In 2019, Ethereum faced a similar scenario – lagging behind Bitcoin for an extended period. However, the bounce back was even more pronounced.
By mid-Q1 2020, the ETH/BTC MVRV ratio climbed to 0.60. This marked the beginning of Ethereum’s strong recovery.
Ethereum shot up a staggering 462% by year-end, leaving Bitcoin in the dust with its 247% gain.
Currently, with institutional inflows accelerating, liquidity pouring into derivatives markets, and the ETH/BTC pair firmly in the green, Ethereum is primed to break the $2.50k resistance zone.
Source: TradingView (ETH/BTC)
The setup is eerily similar to the 2019 cycle. Hence, positioning ETH for a potential repeat of its breakout rally against BTC in this market cycle.
