CryptoQuant is pointing to signs that Ethereum's bear market might finally be wrapping up. According to their analysis, the MVRV ratio dipped down to around 0.65 and then climbed back above 1. In previous cycles, a similar MVRV "reset" happened right near market bottoms and came before ETH started to recover.

What CryptoQuant Is Seeing

This signal is all about the MVRV ratio's moves. The analysts noticed that when MVRV drops to about 0.65 and then bounces back over 1, it's historically lined up with market reversals. Right now, that same setup is showing up again, which CryptoQuant sees as a sign that ETH could be breaking out of its long slump.

What Is MVRV and How Do You Read It?

MVRV measures the ratio between Ethereum's market value and its realized value. If MVRV is below 1, most coins are underwater; above 1 means holders are, on average, in profit. That move across the 1 mark is often seen as a shift in the balance between unrealized gains and losses for ETH holders.

Looking Back at Previous Cycles

In past cycles, similar MVRV drops have lined up with ETH bottoming out and kicked off periods of recovery. The current pattern matches what we've seen historically, but like any on-chain metric, these are signals of probability—not guarantees.