CryptoQuant indicates Ethereum shows signs of nearing a market bottom, although caution remains as definitive signals are lacking.
Ethereum, the second-largest cryptocurrency by market capitalization, is demonstrating on-chain indicators often associated with market bottoms, according to CryptoQuant. Nevertheless, analysts are cautious, noting that a definitive bottom has not yet been established.
Ethereum is currently undervalued, trading 17% below its realized price, but only two out of five signals have reached levels seen in prior market bottoms.
— CryptoQuant.com (@cryptoquant_com) July 23, 2026
Currently, Ethereum is trading around $1,900, significantly below its realized price of approximately $2,300. Historically, such price levels could suggest a looming cycle bottom, although both speculative interest and selling pressure are still being analyzed.
Indicators of Market Sentiment
Upon reviewing five key metrics for Ethereum, only two have hit thresholds typical of past recovery periods: the price-to-realized price ratio and the comparative trading volumes of Ethereum against Bitcoin. The latter metric has notably decreased from 1.75 to 0.5, implying diminished speculative interest.
The MVRV ratio for Ethereum relative to Bitcoin has also dropped from 0.95 in August 2025 to 0.65, indicating that it is currently cheaper compared to Bitcoin but still above historical lows of around 0.45.
In addition, the ratio of inflows for Ethereum and Bitcoin has slid from 1.5 to 0.8, hinting at less selling pressure; however, this remains above the 0.4 mark typically seen at market bottoms.
There are signs of returning institutional interest, as Ethereum's share in spot cryptocurrency ETFs rose slightly after a prolonged decline, increasing from 0.115 in June to 0.13 in July.
Market Dynamics and Bitcoin Trends
Ethereum's supply dynamics also indicate a potential shift, as withdrawals from Binance hit a three-year high at the end of June, possibly reflecting a trend towards self-custody or staking instead of selling. Currently, about 34% of Ethereum's supply is staked, reducing the amount available for trading.
Meanwhile, Bitcoin experienced a decline, dropping below $65,000 amid broader market pressures, including geopolitical tensions and rising oil prices, contributing to an overall dip in risk asset confidence. Analysts noted the S&P 500 and Nasdaq indices also fell in response to these market conditions.
Brent crude oil prices are now officially trading above $100 per barrel, indicating rising inflation expectations.
— The Kobeissi Letter (@KobeissiLetter) July 23, 2026
Mixed sentiments are emerging regarding Bitcoin's trajectory, with some analysts identifying $64,000 as a critical support level while others suggest the recent recovery may be losing momentum.
