Ethereum (ETH) has been exhibiting some positive movement recently, outpacing the broader cryptocurrency market. Over the past 24 hours, ETH saw a significant price spike, reaching an intraday high of $2,832 on February 17. However, the momentum didn’t last long as it retraced to $2,720 by early trading on February 18. Despite the pullback, Ethereum still managed to gain 2% on the day, while the broader market saw a 2.4% dip in total capitalization, according to Santiment.

Santiment’s analysis indicates that Ethereum is showing “mild signs” of a potential rebound. As the second-largest cryptocurrency by market cap, ETH’s performance has been notably stronger than many other altcoins to start the week. The latest rise marks Ethereum’s highest price in 12 days, suggesting that the digital asset may be finding some support.

Ethereum’s Movement Off Exchanges

In addition to the short-term price gains, Ethereum has been showing strong long-term signals, particularly with the continued movement of ETH off centralized exchanges. According to Santiment, only 6.38% of Ethereum’s circulating supply remains on exchanges, a significant decline. The analysts highlighted that when crypto assets like ETH move into cold wallets, it typically signals that investors are holding their positions. This suggests a decrease in the probability of a major sell-off, indicating that holders have confidence in Ethereum’s future potential.

Santiment pointed out that this trend should be viewed as a long-term metric rather than something to base quick trading decisions on. The shift off exchanges aligns with the growing trend of hodling, as investors opt to secure their holdings in cold wallets, away from the risk of exchange-related issues.

Renewed Community Interest in Ethereum

After Ethereum’s underperformance relative to other major cryptocurrencies in 2024, there has been a renewed sense of optimism surrounding ETH. Analysts noted a resurgence of interest in Ethereum this February, with many hoping that the coin could rebound as market-wide recoveries take place. The shift in sentiment comes after a period of stagnation, which saw Ethereum lag behind Bitcoin (BTC) and other large-cap altcoins.

ETH/BTC Ratio Shows Improvement

Another positive sign for Ethereum is the improvement in the ETH/BTC ratio. On February 17, the ratio rose by 7% to reach 0.029, indicating that ETH gained slightly in value relative to Bitcoin. This is a significant shift, as ETH has been losing ground to BTC since mid-2022. While the ratio remains near its weakest levels since December 2020, this recent increase hints at a potential reversal for Ethereum against Bitcoin.

Cautious Optimism Amid Market Volatility

Despite these positive signals, some within the crypto community remain skeptical. YouTuber Lark Davis commented on Ethereum’s recent price increase, stating, “Ethereum pumps a few percent, and then markets dump five minutes later.” This highlights the volatile nature of cryptocurrency markets and the challenges of predicting short-term movements. However, for long-term investors, the increasing interest in Ethereum and the outflow from exchanges suggest a growing confidence in its future.

Conclusion

Ethereum’s recent price action, along with the continued movement of ETH into cold storage, paints a picture of cautious optimism for the cryptocurrency. While some traders remain cautious about the potential for a sustained rally, the long-term outlook for Ethereum may be improving as holders show renewed interest and confidence. As Ethereum continues to exhibit signs of life, many are keeping a close eye on its performance in the coming weeks, with hopes for a rebound as broader market conditions improve.