CryptoQuant, a digital asset analytics firm, suggests that the altcoin market could experience a surge in price based on an on-chain metric for Ethereum (ETH). 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 the Ethereum market is heating up, and historically, when Ethereum experiences a surge, other altcoins tend to follow suit.

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

At the time of writing, ETH is trading at $3,514 and has been trading mostly sideways throughout the week. CryptoQuant also points out that Bitcoin is trading below the critical support level of $65,800, indicating a potential correction of 8%-12% towards $60,000.

BTC is currently priced at $64,148 and has experienced a decline of nearly 1.5% in the past 24 hours and over 3% in the past week. Julio Moreno, the head of research at CryptoQuant, states that the Bitcoin market is currently at its least bullish point since September 2023, based on its bull market cycle indicator.

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