Can Ethereum Overcome Rising Supply and Weakened Demand? The Pectra Upgrade’s Role

• Ethereum’s supply hits a new high, increasing selling pressure and hindering price growth.
• The Dencun upgrade reduced fees, weakening Ethereum’s deflationary mechanism.
• Ethereum’s Pectra upgrade brings key improvements, offering hope for future scalability.

Ethereum may be poised for a comeback as the latest on-chain data from CryptoQuant signals a rare undervaluation relative to Bitcoin, hinting at a possible accumulation phase. The analytical platform’s data indicated that ETH/BTC MVRV is low, signaling a possible entry point for buying. Historically, ETH outperformance has been preceded by such low levels. However, existing fundamentals indicate several impediments that may cap a vigorous comeback in the price of Ethereum.

ETH is now extremely undervalued compared to BTC, the first time since 2019.

Historically, this led to Ethereum outperforming.

However, supply pressure, weak demand, and flat activity could stall a rebound. pic.twitter.com/QqU2Xh3vo9

— CryptoQuant.com (@cryptoquant_com) May 8, 2025

ETH’s supply now exceeds 120.7 million ETH, an all-time high. This shows a change from the post-merger deflationary perspective. The rise in supply p…

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