A recent on-chain metric for Ethereum (ETH) suggests that the altcoin market may be gearing up for a significant price increase, as reported by the digital asset analytics firm CryptoQuant.

According to the firm, Ethereum’s Market Value to Realized Value (MVRV) indicator is increasing at a faster rate than Bitcoin’s (BTC) MVRV. This indicates that ETH’s market is showing signs of heating up, historically leading to a surge in other altcoins as well.

MVRV is a ratio that compares a digital asset’s market capitalization to its realized capitalization, which is the value of all assets at the price they were purchased. It is a tool used to determine whether a token is undervalued or overvalued.

ETH is currently trading at $3,514, and despite some fluctuations, the second-ranked cryptocurrency by market cap has been mostly flat this week.

Additionally, CryptoQuant mentions that Bitcoin is trading below a critical support level of $65,800, indicating a potential correction of 8%-12% towards $60,000.

At the time of writing, BTC is priced at $64,148, down nearly 1.5% in the last 24 hours and over 3% in the past week. Julio Moreno, head of research at CryptoQuant, notes that the Bitcoin market is currently experiencing its least bullish period since September 2023, based on the bull market cycle indicator.

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