Here is the reason why Ethereum could explode in the coming days

According to a recent cryptova report, Ethereum could achieve a decisive turn against bitcoin. The ETH/BTC price ratio jumped 38 % last week after it touched its lowest level since January 2020. Could this magnificent development announce the long -awaited start of the new “altcoin season”?

Technical signals confirm the possible reversal of the trend

According to cryptocurrency scientists, the Ethereum is currently strongly underestimated compared to bitcoins.

The MVRV ETH/BTC indicator (market value to the realized value), which compares the current market value with an average value of two cryptos, has achieved the floor level we have observed since 2019.

This detail is essential, because when this indicator last affected such levels, Ethereum later experienced an exceptional period of growth against bitcoin.

The exchange between ETH and BTC is clearly intense. The volume ratio reached last week 0.89, which is a record since August 2024. Simply it means that traders with more and more on Ethereum are building rather than bitcoins.

Cryptoquant experts consider this to be a significant similarity to the 2019-2021 period, when ETH saw its relative value multiplied by four compared to BTC.

Specifically, during this period, the price ratio of ETH/BTC increased from approximately 0.02 to more than 0.08, reflecting the massive overcoming Ethereum against bitcoin.

The Ethereum has been reflected in the course for several weeks, a sign that investors will regain confidence in its potential. At the time of writing this article traded for $ 2,347, which is 57 % in one month.

Peter Brandt, a recognized technical analyst, recently changed his position to Ethereum and moved down to the upper screening with a potential goal of $ 4,000.

Institutional interest and decrease in pressure fuel optimism

Large institutional investors are massively returning to Ethereum. Evidence? Ethereum ETFE has seen continuous growth of its assets since the end of April.

This renewed interest is not a coincidence: it coincides with the announcement of the main technical updates such as the EIP-7928, which promises to significantly improve network performance.

The particularly stimulating signal comes from the ETH cryptocurrency cryptocurrency: transfers to the replacement of platforms have been the lowest since 2020. This metric is necessary to understand the dynamics of the market.

When less ETH arrives on the stock exchanges, it means that the holders are less inclined to sell their chips to reduce the pressure on the price.

The asset ratio and the ratio of ETH/BTC prices increase at the same time, a sign that institutional investors are re -exporting their portfolios in favor of Ethereum.

This trend is accompanied by the main technical development, such as a recent design for parallel design of layer 1, which could therefore fundamentally transform the network architecture.

However, cryptocurrency analysts remain careful. In order to definitely confirm this reversal of this trend, the main technical obstacle must still be exceeded: the ETH/BTC ratio must exceed its mobile diameter in 365 days.

To put it simply, the Ethereum must maintain its overcoming bitcoins for a long time to verify this new bull cycle. If this condition is met, we could participate in the permanent growth phase for Ethereum in the coming months.

Renunciation

The words and opinions expressed in this article are involved only by their author and should not be considered investment counseling. Do your own research before any investment decision.