Ethereum (ETH) is experiencing a notable increase in its Market Value Realized Value (MVRV) metric, prompting discussions about its valuation relative to Bitcoin (BTC). Despite these metrics climbing, analysts suggest that ETH may not yet be overvalued, citing robust on-chain activity as a supporting factor.

Ki Young Ju, CEO of CryptoQuant, highlighted that Ethereum’s MVRV has been rising swiftly, indicating a heated market relative to its on-chain fundamentals. This uptick coincides with increased transaction volumes and active addresses on the Ethereum network, underscoring strong underlying activity.

MVRV is a critical indicator used to assess whether an asset's market value exceeds its realized value, which represents the price paid by users compared to the current market price. Over the past 30 days, Ethereum's MVRV has surged by 29.9% to 91.43%, while Bitcoin's MVRV has declined by 10.8% to 127.41% during the same period, according to Santiment data.

While a high MVRV traditionally suggests potential overvaluation and could signal a future sell-off, Ju believes that the imminent introduction of spot Ether ETFs could sustain investor interest despite these metrics.

"With the anticipated launch of Ether ETFs soon, the current high MVRV may not deter investors," Ju remarked, alluding to statements from SEC Chair Gary Gensler indicating ETF trading could commence as early as July.

Pseudonymous crypto technical analyst Yoddha also weighed in, noting Ethereum's recent price consolidation following a bullish morning star formation. Yoddha expressed optimism, predicting Ethereum could surpass $10,000 by year-end.

Ethereum is currently trading at $3,556, demonstrating resilience following recent developments including the conclusion of the SEC investigation into its security status, which bolstered investor sentiment.

Over the past week, Ethereum's dominance in the cryptocurrency market has increased by 6.62%, contrasting with a slight decline of 0.23% in Bitcoin's dominance. Ethereum now holds a dominance of 18.8%, while Bitcoin maintains 55.31% of the market share.

As Ethereum navigates these dynamics, its valuation metrics and market activity continue to shape broader sentiments within the crypto community, highlighting ongoing shifts in investor behavior and market conditions.