Recent analysis by CryptoQuant suggests that Ethereum’s valuation relative to Bitcoin is currently significantly undervalued, marking a first since 2019. Historically, such conditions have often led to Ethereum outperforming Bitcoin. However, factors like supply pressure, weak demand, and subdued activity might hinder this potential rebound. The Market Value to Realized Value (MVRV) ratio is used to assess an asset’s market value against its ‘real’ value, typically based on the average cost held by investors. The ETH/BTC MVRV ratio reflects how much Ethereum’s current market value exceeds Bitcoin’s historical average purchase price. 2019 saw a similar undervaluation in the ETH/BTC MVRV ratio, and Ethereum subsequently outperformed Bitcoin, leading to price increases. In 2025, this ratio is currently hovering around 0.4, indicating potential undervaluation of Ethereum compared to Bitcoin. While there’s hope for a strong rebound, factors like supply pressure, weak demand, and subdued activity pose challenges for a full recovery.