Ethereum Surges to 12-Day High as Exchange Supply Hits Record Low

• Ethereum reached a 12-day high of $2,832 before returning to $2,720.
• ETH Price gained 2% in 24 hours while the broader crypto market dropped 2.4%.
• Santiment reported ETH’s exchange supply is at its lowest level since inception.

Ethereum gained momentum over the past 24 hours, reaching a 12-day high of $2,832 before returning to $2,720. The price increase represents a 2% daily gain, while the broader crypto market saw a 2.4% decline. According to blockchain analytics firm Santiment, ETH’s exchange supply has dropped to its lowest level since its inception, signaling a strong accumulation trend.

Ethereum Gains Momentum After Months of Underperformance

ETH’s recent price movement follows months of lagging behind other major cryptocurrencies. Analysts suggest that this is not a breakout, but it may indicate a broader market recovery. The altcoin has been outperforming most cryptocurrencies this week, signaling improving sentiment.

A key factor supporting ETH’s long-term outlook is its declining exchange supply. Santiment data shows that only 6.38% of ETH’s total supply remains on centralized exchanges. This trend suggests that investors prefer holding their assets, reducing the chances of a large sell-off.

Further supporting the bullish case, ETH withdrawals from derivatives exchanges have surged to their highest level since August 2023. Analysts believe this shift indicates growing confidence among investors. While these metrics point to long-term accumulation, they do not serve as immediate trading signals.

Ethereum’s Valuation Against Bitcoin Remains Weak

Despite the recent rally, Ethereum continues to struggle against Bitcoin in relative strength. The ETH/BTC ratio improved by 7% on February 17, reaching 0.029. However, it remains near its lowest level since December 2020.

ETH has been underperforming Bitcoin since mid-2022, with BTC maintaining dominance in the market. This trend reflects shifting investor preference toward Bitcoin over Ethereum in recent months. The growing gap suggests that Ethereum needs more potent catalysts to regain traction.

The recent surge in ETH’s price has not significantly altered its valuation relative to Bitcoin. Analysts believe that Ethereum must surpass key resistance levels to gain strength against BTC. The current weak ratio indicates that Ethereum still faces bearish pressure despite short-term gains.

Market Sentiment Remains Divided

Market opinions remain split on Ethereum’s latest price movement. Some traders see the rally as a sign of recovery, while others remain cautious. Crypto analyst Lark Davis dismissed the price jump, arguing that ETH often rises slightly before dropping again.

Analysts at Time To Trade noted that ETH has not yet broken the $2,710 resistance level. They believe that failure to hold above this mark indicates weak buying pressure. If Ethereum falls below the $2,635 support level, further declines toward $2,500 could follow.

Short sellers have also increased their bets against ETH in recent weeks. Futures contracts on the Chicago Mercantile Exchange (CME) reached a record high of 11,341 earlier this month. The surge in bearish positions, up 40% in a week and 500% since November, signals skepticism about Ethereum’s short-term prospects.