Ethereum Surges to 12-Day High as Market Signals Rebound Potential

Ethereum (ETH) has defied the broader cryptocurrency market trend, showing unexpected strength over the past 24 hours and climbing to its highest price in nearly two weeks. According to on-chain analytics firm Santiment, ETH’s recent movement signals “mild signs” of a rebound, a positive shift for the second-largest cryptocurrency by market capitalization.

Ethereum Gains Strength

On February 17, Ether surged to an intraday high of $2,832, marking its best performance in 12 days. However, the rally was short-lived as ETH corrected back to around $2,720 by early February 18. Despite the pullback, the asset still posted a 2% daily gain, a notable contrast to the broader crypto market, which saw a 2.4% decline in total market capitalization.

Santiment analysts highlighted a critical trend supporting Ether’s bullish outlook: a significant decline in exchange-held ETH. Only 6.38% of Ethereum’s total supply now resides on centralized exchanges, indicating a growing preference for self-custody. Typically, when investors withdraw their holdings from exchanges into cold wallets, it suggests confidence in the asset’s long-term value and reduces the likelihood of mass sell-offs.

ETH/BTC Ratio Sees Slight Recovery

The recent uptick in Ethereum’s price coincides with a noticeable shift in market sentiment. After underperforming against major cryptocurrencies in early 2024, ETH has started to regain investor interest. Santiment noted that renewed optimism surrounding Ethereum’s future could set the stage for further price appreciation, particularly if a market-wide recovery gains momentum.

However, not everyone is convinced of a breakout potential. Crypto influencer Lark Davis took a skeptical stance, commenting that “Ethereum pumps a few percent, and then markets dump five minutes later.” This reflects the lingering volatility and uncertainty in the crypto space, which continues to keep traders on edge.

Ethereum’s recent surge has also led to an improvement in its ETH/BTC ratio—a key metric that measures ETH’s performance relative to Bitcoin. The ratio climbed 7% on February 17, reaching 0.029. Despite this short-term gain, ETH remains near its lowest levels against BTC since December 2020, signaling a long road to reclaiming its former dominance.