Ethereum (ETH) may be entering one of its most interesting valuation zones in this market cycle. After spending months under pressure relative to Bitcoin (BTC), several on-chain and institutional metrics are beginning to improve, even though some indicators suggest the bottoming process is not yet complete.
The latest CryptoQuant data shows Ethereum is trading below its realized price, institutional allocations are slowly recovering, and selling pressure is easing. While the broader picture remains mixed, historical trends suggest ETH is approaching levels that have previously offered attractive long-term opportunities.
Ethereum Is Trading Below Its Realized Price
The realized price model remains one of the strongest indicators for identifying periods when Ethereum is undervalued. Ethereum is currently trading near $1,900, approximately 17% below its realized price of $2,304.
An accompanying chart places ETH in the lower half of its realized price bands, an area that has historically aligned with market bottoms or periods when downside risk becomes more limited compared with potential upside.
Previous cycles have shown that when Ethereum spends an extended period trading below or near its realized price, sentiment is often at its weakest while accumulation begins to develop beneath the surface.
The chart also highlights that Ethereum remains well below the upper realized price band, which has historically acted as a resistance zone during euphoric market conditions.
ETH/BTC Metrics Continue to Improve
CryptoQuant also noted that Ethereum’s valuation relative to Bitcoin has cooled substantially over the past year. The ETH/BTC MVRV ratio reached approximately 0.95 in August 2025 but has since declined to around 0.65.
Although the metric has not yet reached the 0.45 level that marked previous ETH bottoms against Bitcoin, the correction has significantly reduced Ethereum’s relative overvaluation.
Selling pressure is also beginning to weaken. The ETH/BTC exchange inflow ratio surged above 1.5 during the peak selling period in August 2025 but has since fallen to roughly 0.8. Historically, the lowest selling pressure has emerged when the metric approached 0.4, suggesting that further improvement may still be possible before a definitive cycle bottom is confirmed.
At the same time, trading activity is already showing characteristics commonly associated with market bottoms. The weekly ETH/BTC spot volume ratio has fallen from approximately 1.75 to around 0.5, a level that has previously aligned with major turning points for Ethereum relative to Bitcoin.
Institutional Interest Is Showing Early Signs of Recovery
Institutional demand for Ethereum is beginning to stabilize after a prolonged decline. The ETH/BTC ETF holdings ratio fell from roughly 0.20 in August 2025 to 0.115 in June 2026 before recovering to approximately 0.13 in recent weeks.
While this remains far below previous highs, the rebound suggests that institutional allocators may once again be increasing their exposure to Ether after nearly a year of underperformance.
Taken together, the data presents an interesting picture. Two of the five major bottoming indicators have already reached historically favorable levels, while the remaining metrics are moving in the right direction but have not yet fully confirmed a cycle bottom.
Ethereum’s current market structure suggests it is significantly cheaper than it was during its relative peak against Bitcoin. Selling pressure has eased considerably, institutional demand is beginning to recover, and valuation metrics indicate ETH is trading near historically attractive zones.
Whether the absolute bottom is already in place remains uncertain. However, the combination of realized price data, improving on-chain metrics, and recovering institutional interest suggests that Ethereum’s long period of weakness relative to Bitcoin may be approaching an important inflection point.
The CoinRemark Team
