Ethereum Rips 20% Higher—BTC Ratio Hits Most Undervalued Levels Since 2019

Ethereum’s bulls are back in charge as ETH surges past key resistance, posting a 20% weekly gain while flipping its Bitcoin ratio to levels not seen since the pre-DeFi craze. Traders are scrambling to adjust positions as the ETH/BTC pair screams ’oversold’ by every historical metric.

The rally comes amid renewed institutional interest in Ethereum’s layer-2 ecosystem—though let’s be real, half these hedge funds still can’t explain how rollups work. With staking yields holding steady and ETF rumors circulating again, ETH might finally be shaking off its ’digital silver’ complex.

As one trader put it: ’When ETH wakes up, it doesn’t walk—it teleports.’ Just don’t tell the Bitcoin maxis their safe-haven asset is getting outshined by the chain that actually gets used for things.

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.