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Ethereum (ETH) showed signs of life this week, reaching a 12-day high of $2,832 before settling at $2,720.
This 2% gain came as the broader crypto market fell 2.4%, according to blockchain analytics firm Santiment.
Behind this modest rally lies a potentially significant trend: ETH continues to vanish from exchanges at an unprecedented rate. Only 6.38% of Ethereum’s total supply remains on centralized exchanges—the lowest level since the cryptocurrency’s inception.
“ETH continues to move off of exchanges and into cold wallets at a shocking pace,” Santiment reported on February 18. This steady migration reduces the probability of major sell-offs as investors signal long-term holding intentions.
Simultaneously, transaction fees have dropped dramatically to just $0.41 per transfer, down from a two-year high of $15.21. These reduced costs make the network more accessible for new users and developers.
“When Ethereum transaction fees are low, it usually means the network is not overly crowded. These reduced costs make it easier for new buyers to enter the market,” Santiment explained.
The combination of these factors has prompted some analysts to predict substantial gains ahead. Crypto analyst Javon Marks believes ETH could surge over 72% to reach its all-time high.
“Coming out of what may have only been a massive bottoming/consolidation, $ETH could be setting up here for an over +72.1% surge in a recovery back to its ATH areas!” Marks wrote on February 17.
Not everyone shares this optimism. Crypto YouTuber Lark Davis dismissed the recent price movement, quipping: “Ethereum pumps a few percent, and then markets dump five minutes later.”
This skepticism is reflected in Ethereum’s ETH/BTC ratio, which remains near its lowest level since December 2020 despite improving by 7% on February 17. At 0.029, the ratio demonstrates ETH’s continued struggle against Bitcoin since mid-2022.
Short-selling activity has also reached unprecedented levels. Futures contracts on the Chicago Mercantile Exchange recently hit a record 11,341 contracts—up 40% in one week and 500% since November—indicating growing pessimism about ETH’s short-term prospects.
Analysts at Time To Trade noted that ETH has failed to reclaim the $2,710 resistance level, signaling weak buying pressure. They’ve identified $2,635 as a crucial support level, warning that a break below could trigger further declines toward $2,500.
For long-term investors, the current environment offers a potentially smart buying moment. History shows that when Ethereum fees stay low and more coins leave exchanges, prices often climb significantly later as more people start using the network.
While short-term price action remains uncertain, the fundamental metrics suggest Ethereum may be quietly building momentum for future growth.
