Ethereum is now trading roughly 17% below its realized price of $2,300. Data from CryptoQuant’s weekly report shows the crypto market’s second-largest asset is entering territory that historically coincides with long-term cycle bottoms and extreme undervaluation.
This dynamic is even more pronounced when compared against Bitcoin. The ETH/BTC MVRV ratio dropped sharply from 0.95 in August 2025 to around 0.65 currently. This decline positions Ethereum at a substantial discount relative to its primary rival, just as Bitcoin reclaimed strength by breaking past $67,000 on optimism surrounding the CLARITY Act bill. Ethereum briefly rallied to touch $1,950 this week, though upward momentum remains constrained.
Two Out of Five Signals
Although valuation metrics appear attractive for accumulation, CryptoQuant notes that only two of five cycle bottom indicators have reached historical reversal levels. The other three key metrics are gradually improving, but have not yet hit the extreme territory that typically confirms the end of a downtrend.
Several positive shifts are still evident in on-chain data. The MVRV ratio has moved out of overvalued territory, token inflows to major exchanges are subsiding, and spot trading volume for the ETH/BTC pair has reached its historical floor. Furthermore, holdings in Ethereum ETF products are showing early signs of recovery after months of weakness.
Where Is the Supply Going?
Behind the muted price action, the circulating supply of Ethereum on the open market continues to shrink. About 34% of Ethereum’s total circulating supply is currently locked in staking contracts, setting a new all-time high for the network and directly reducing short-term sell pressure as millions of ETH are removed from active circulation.
Whale and institutional behavior further reinforces this accumulation trend. During the week of June 29, Ethereum withdrawal volume from Binance hit its highest level in over three years. A similar buying spree came from Bitmine Immersion Technologies. As the largest corporate holder of Ethereum, the firm aggressively added 325,000 ETH to its treasury in just one month. Notably, they continued this strategy despite holding unrealized paper losses, consistent with their long-term goal of acquiring 5% of Ethereum’s total global supply.
Awaiting Fresh Capital Inflows
With tightening supply and depressed valuations, market analysts see potential tailwinds from outside the crypto ecosystem. There is opportunity for capital rotation from traditional investors taking profits on richly valued artificial intelligence (AI) equities and reallocating that liquidity into crypto.
Capital consistently seeks favorable risk-reward opportunities. While discounted valuations provide Ethereum with initial appeal, confirmation of a sustained uptrend will only arrive once network signals flash green across the board.
Reported by Cointelegraph.
Read also: How Crypto Staking Works and Its Risks
Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
