Ether is becoming more and more attractive from a valuation standpoint, especially compared to Bitcoin, but onchain data suggests that the market has yet to reach a final cycle bottom, according to CryptoQuant.
In its latest weekly report, the analytics firm reported that Ether (ETH) is trading approximately 17% below its realized price, which is the average cost of acquiring all ETH circulating on the network, which is approximately $2,300. Historically, ETH trading below the realized price has coincided with periods of market undervaluation and long-term lows.
Ether is also showing signs of improvement compared to Bitcoin (BTC). CryptoQuant said ETH’s market value to realized value (MVRV) ratio has retreated from extreme overvaluation, exchange inflows have declined, ETF holdings have begun to recover from months of weakness, and ETH/BTC spot volumes have fallen to a range historically associated with market lows.
CryptoQuant claims that two of the five key ETH low indicators have been confirmed. Source: CryptoQuant
Despite this, only two of CryptoQuant’s five lows have reached historic reversal levels. The remaining indicators are improving but have not yet reached the extremes that marked the lows of the previous cycle, suggesting that a bottom for Ethereum may still be forming.
The report comes as Ether briefly climbed above $1,950 this week and Bitcoin breached $67,000, buoyed by optimism around the US CLARITY Act. At the same time, some market analysts have pointed to the potential for capital rotation from highly valued AI stocks back to cryptocurrencies, which could further support Ether if risk appetite increases.
The ETH/BTC MVRV ratio dropped from almost 0.95 in August 2025 to around 0.65, signaling that Ethereum has become significantly cheaper relative to Bitcoin. Source: CryptoQuant
Related: Grayscale plans regular cash payouts from ETH and SOL staking rewards
The supply of Ethereum increases as currencies flow out and rates enhance
Over the past month, Ethereum has shown several constructive onchain signals. During the week of June 29, withdrawal activity on Binance, the world’s largest cryptocurrency exchange by trading volume, reached its highest level in over three years.
Analysts generally interpret continued exchange outflows as a sign that investors are taking assets into custody or stationing them rather than holding them on exchanges for potential sale, although such flows do not guarantee accumulation.
Meanwhile, according to Staking Rewards, a record 34% of Ethereum’s circulating supply is currently staked. As Cointelegraph previously reported, higher staking reduces the amount of ETH readily available for trading, potentially reducing near-term selling pressure if demand remains resilient.
Tom Lee’s Bitmine Immersion Technologies, the largest corporate holder of ETH, continues to accumulate ETH, increasing its holdings by 325,000 ETH in one month, despite enormous unrealized losses. He set a goal of owning 5% of the second largest cryptocurrency.
Related: Will the US get CLARITY this week? Bitcoin’s fresh target of 80,000 dollars: Hodler’s Digest, July 19
