- Ethereum has just created the strongest bullish candle compared to Bitcoin recently.
- Is ETH ready to steal the spotlight from BTC?
Ethereum [ETH] is making a strong comeback — no longer a whisper, but a resounding roar.
Gone are the days of being overshadowed and undervalued, Ethereum has broken through the $1,800 mark, attracting investors seeking deep value and momentum.
But this might not just be a temporary price surge.
According to CryptoQuant, similar breakouts in the ETH/BTC pair have historically preceded Ethereum's strongest market cycles.
So is this the final breakthrough that will permanently reverse the ETH/BTC scenario?
Everything is rising, but Ethereum leads
The cryptocurrency market has surged as capital flows into risky assets, pushing the total market capital up 5.67% to $3.27 trillion at the time of writing.
While Bitcoin [BTC] initially captured the spotlight by returning to the $100,000 mark, the real turning point occurred when this growth phase shifted to Ethereum's long-awaited revival.
This is evident in the 1D ETH/BTC chart, where a 14.46% jump in one day added the necessary strength to Ethereum's race, drawing market attention.
More importantly, this movement is supported by a significant shift in relative valuation. Currently, ETH is trading below its historical value compared to BTC – the first time this has happened since 2019.
Source: CryptoQuant
This level is notable because when the ETH/BTC Market Value to Realized Value (MVRV) ratio is this low, Ethereum tends to outperform Bitcoin.
With the current ratio at 0.37, significantly lower than 1, this signals a potential opportunity for Ethereum to "catch up" with Bitcoin's price action.
2019 Cycle: Template for ETH's next step
In 2019, Ethereum faced a similar situation – lagging behind Bitcoin for a long time. However, its subsequent recovery was even more remarkable.
By mid-Q1 2020, the ETH/BTC MVRV ratio had increased to 0.60. This was the beginning of Ethereum's strong recovery.
Ethereum surged up to 462% by year-end, far outpacing Bitcoin's 247% increase.
Currently, with institutional capital flow accelerating, liquidation flowing into the derivative market, and the ETH/BTC pair turning green, Ethereum is ready to break through the $2.50K resistance zone.
Source: TradingView (ETH/BTC)
The scenario seems to be repeating similarly to the 2019 cycle, positioning Ethereum to potentially recreate a strong breakout against BTC in this market cycle.
