Ethereum Shows Early Signs of Rebound as Holders Move ETH Off Exchanges

Ethereum (ETH) has shown promising signs of a potential rebound, outpacing the broader cryptocurrency market over the past 24 hours. According to analysts at Santiment, Ethereum’s recent price movements and the ongoing trend of ETH moving off exchanges could signal a positive shift for the cryptocurrency.

Ethereum Outperforms the Market

On February 17, 2025, Ethereum surged to an intraday high of $2,832, marking its highest price in the past 12 days. Although it couldn’t maintain that momentum and pulled back to $2,720 in early trading on February 18, ETH still managed to gain 2% on the day, while the overall cryptocurrency market saw a decline of 2.4% in terms of total market capitalization.

Santiment’s analysts highlighted this as a rare positive move for Ethereum, stating that ETH was "outpacing most altcoins" and showing “mild signs of a rebound” to start the week. This shift in momentum is especially significant as Ethereum had underperformed for much of 2024, leading many to anticipate a potential recovery once the broader market stabilizes.

ETH Moving Off Exchanges at a Rapid Pace

In addition to price movement, Ethereum’s fundamentals are showing signs of strength. Santiment observed that Ethereum continues to flow off centralized exchanges at a significant pace. As of February 2025, only 6.38% of Ethereum's total supply remains on exchanges, indicating that more holders are choosing to store their ETH in cold wallets.

When investors move their assets off exchanges, it is often seen as a sign that they are holding long-term rather than planning to sell. This action tends to reduce the likelihood of an immediate sell-off, which can be a positive indicator for Ethereum’s price stability in the long run.

Santiment cautioned, however, that this metric should be viewed from a long-term perspective rather than a short-term trading signal. “While it decreases the probability of a major upcoming sell-off, it is important to consider this as a long-term metric,” the analysts noted.

Renewed Interest in Ethereum

Ethereum has been experiencing renewed interest from its community in February 2025, following a period of lackluster performance. After lagging behind other large-cap cryptocurrencies throughout 2024, many in the crypto space are starting to anticipate a potential rebound for ETH as broader market recoveries take hold.

Despite the optimism, not everyone is convinced about Ethereum’s immediate future. Crypto YouTuber Lark Davis expressed skepticism, noting that Ethereum’s price often experiences brief pumps, only to be followed by market pullbacks. “Ethereum pumps a few percent, and then markets dump five minutes later,” Davis quipped.

ETH/BTC Ratio Improvement

Another promising sign for Ethereum is the improvement in its ETH/BTC ratio—a key metric that measures the price of Ether relative to Bitcoin (BTC). This ratio had been at multi-year lows since mid-2022 as Ethereum lost ground to Bitcoin.

On February 17, the ETH/BTC ratio saw a 7% increase, rising to 0.029. While it is still near its weakest levels since December 2020, this recent improvement could suggest that Ethereum is starting to regain some strength relative to Bitcoin, a trend that traders and investors will likely monitor closely in the coming weeks.

Conclusion

While Ethereum’s price action and off-exchange movements may be showing early signs of recovery, the cryptocurrency still faces challenges ahead. Ethereum’s rebound in February 2025 could indicate the start of a broader recovery, but the market remains cautious. Investors are closely watching whether ETH can maintain its upward momentum and if the growing interest from holders moving ETH off exchanges is a signal of long-term confidence in the asset.

As always, the crypto market’s volatile nature means that Ethereum's path forward could be unpredictable, but the recent signs of life suggest that Ethereum may be positioning itself for a more robust 2025.