Ethereum Recovers as Holders Withdraw ETH From Exchanges

According to the latest data from Santiment, Ethereum (ETH) shows encouraging signs of recovery, particularly due to a significant movement of holders withdrawing their ETH en masse from exchange platforms.

Ethereum regains color in an uncertain market

On February 17, Ethereum experienced a notable increase reaching $2,832, its highest level in 12 days. This performance is all the more remarkable as ETH rose by 2% while the overall cryptocurrency market declined by 2.4%. However, the rebound was short-lived, with the price quickly falling back to $2,687.

This volatility is part of a particular context for Ethereum. Since November 2024, the crypto has been going through a difficult period, having lost nearly 37% of its value against the dollar.

The ETH/BTC ratio, which measures the value of Ether compared to bitcoin, is currently at its lowest level since December 2020, despite a slight improvement of 7% observed on February 17.

A strong signal from investors

The most positive aspect comes from on-chain movements. According to Santiment, only 6.38% of the total ETH supply remains on exchange platforms, a historically low level. Investors are massively transferring their ETH to cold wallets, a behavior generally interpreted as a positive long-term signal.

This trend coincides with major technical developments. The Pectra update, scheduled for April 2025, promises to be one of the most significant in Ethereum’s history. It will integrate up to 20 EIPs (Ethereum Improvement Proposals) and double the network’s data processing capacity. A second update, Fusaka, is also planned to improve the transaction inclusion process.

However, these technical advances come against a backdrop of tensions within the Ethereum community. The creation of a “second foundation” by Konstantin Lomashuk, founder of Lido, illustrates the growing divisions, particularly after the ousting of several historical developers from the Ethereum Foundation.

In conclusion, although Ethereum’s price remains volatile, holder behavior suggests growing confidence in the crypto’s long-term prospects. Forthcoming technical updates, notably Pectra, could act as catalysts to reinforce this positive momentum.