Ethereum gains traction as holders withdraw ETH from exchanges.

Over the past 24 hours, Ethereum has shown rare strength, achieving a 12-day high and signaling "mild signs" of a rebound, according to data from Santiment, a leading market intelligence platform. 

The analysts pointed out that Ethereum has outperformed most altcoins at the start of the week, which could be seen as an indication of potential upward momentum, especially after a long period of underperformance compared to other large-cap cryptocurrencies. The move came after Ethereum reached a peak price of $2,832 on February 17, marking its highest intraday price in 12 days. 

However, Ethereum was unable to maintain that momentum and slipped back to around $2,720 in early trading on February 18. Despite the pullback, Ethereum still posted a 2% daily gain, while the broader crypto market retreated by 2.4%, reflecting Ethereum's relative strength.

Santiment also highlighted a significant trend: Ethereum has been moving off centralized exchanges at an accelerated rate, with just 6.38% of its available supply remaining on exchanges. 

This movement is often seen as a positive sign by market participants, as it typically suggests that investors are "hodling" (holding onto their assets for the long term) rather than selling. The reduction in exchange balances decreases the likelihood of a major sell-off, as fewer coins are available on exchanges for immediate trading. 

However, Santiment also cautioned that this trend should be interpreted as a long-term metric, not one to react to on a short-term or swing trading basis.

Additionally, there has been renewed interest in Ethereum in February, following its underperformance in 2024. Ethereum had lagged behind other large-cap cryptocurrencies in terms of performance throughout 2024, but the shift in market sentiment may indicate that investors are beginning to anticipate a rebound for Ethereum as broader market recoveries unfold. 

Santiment's analysts suggested that this renewed optimism could be linked to Ethereum's potential for recovery, particularly in the context of improving market conditions.

Despite these positive signs, not everyone is convinced that Ethereum's rally will continue. Crypto YouTuber Lark Davis humorously commented that "Ethereum pumps a few percent, and then markets dump five minutes later," suggesting skepticism about the sustainability of Ethereum's recent gains. 

His remark reflects a common sentiment in the crypto community, where short-term price fluctuations can often undermine confidence in a sustained upward trend.

Another interesting aspect of Ethereum's recent price movement is its impact on the ETH/BTC ratio. This ratio, which measures Ethereum's price relative to Bitcoin, has been at multi-year lows since mid-2022 as Ethereum has lost ground to Bitcoin. However, on February 17, the ETH/BTC ratio improved by 7%, reaching 0.029. While this is a positive development for Ethereum, it has remained near its weakest levels since December 2020, according to data from TradingView. 

The improvement in this ratio is seen as a sign that Ethereum could be regaining some ground relative to Bitcoin, though it still has a long way to go before it returns to the highs seen earlier in the market cycle.