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Ether undervalued vs Bitcoin, bottom not yet in: CryptoQuant

  • Ether is trading roughly 17% below its realized price of about $2,300, a level historically associated with market undervaluation and long-term bottoms.
  • Only two of CryptoQuant’s five bottoming indicators have reached historical reversal levels, suggesting the cycle bottom may still be forming.
  • Exchange outflows and staking are tightening Ethereum supply, while Bitmine Immersion Technologies continues accumulating Ether despite large unrealized losses.

Ether briefly climbed above $1,950 this week as CryptoQuant reported the asset is trading roughly 17% below its realized price of about $2,300, a level historically coinciding with periods of market undervaluation. The analytics firm noted that ETH’s MVRV ratio has retreated from extreme overvaluation and exchange inflows have declined, while ETF holdings have begun to recover after months of weakness.

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However, only two of CryptoQuant’s five bottoming indicators have reached historical reversal levels. The remaining metrics are improving but have yet to hit the extremes seen at previous cycle lows, meaning Ethereum’s bottom may still be forming.

Meanwhile, the ETH/BTC MVRV ratio has fallen from nearly 0.95 in August 2025 to around 0.65, signaling that Ethereum has become significantly cheaper relative to Bitcoin. Onchain data also shows constructive supply signals: withdrawal activity on Binance climbed to its highest level in more than three years during the week beginning June 29.

Analysts interpret sustained exchange outflows as a sign that investors are moving assets into self-custody or staking rather than keeping them on exchanges for potential sale. A record 34% of Ethereum’s circulating supply is now staked, reducing the amount readily available for trading and potentially easing short-term selling pressure if demand remains resilient.

Tom Lee’s Bitmine Immersion Technologies, the largest corporate ETH holder, continues to accumulate Ether, boosting its holdings by 325,000 ETH over one month despite sitting on large unrealized losses. The firm has set a target to hold 5% of the second-biggest cryptocurrency.

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