Is Ethereum deceased or preparing for a resurgence? In-depth examination of Ether
Ethereum (ETH) continues to struggle below the $2,700 level, despite Bitcoin’s resilience, while the broader crypto market and top altcoins rebound. Traders seem to be ignoring concerns about China’s DeepSeek artificial intelligence advancements and US President Donald Trump’s tariffs.
However, data provider Cryptoeq suggests that sentiment among traders has turned positive, which could potentially change the underwhelming price performance of the largest altcoin.
Ethereum’s holder count has been steadily increasing, according to on-chain data from intelligence tracker Santiment. On Tuesday, the number of Ethereum holders reached 138.98 million, with nearly 500,000 new holders in the past week. This supports a bullish thesis for the altcoin.
The Network realized profit/loss metric, which measures the net profit or loss of Ether tokens moved daily, showed significant negative spikes between January 30 and February 8. Traders selling ETH at a loss is usually considered a sign of capitulation. This could indicate that Ethereum traders are exchanging their ETH for stablecoins or other cryptocurrencies, potentially signaling a price recovery in the near future.
The supply of Ethereum held by whales or large wallet investors, excluding exchange wallets, has increased by nearly half a million ETH tokens in February 2025.
Metrics from derivatives traders show a shift in sentiment towards “bullish.” The funding rate aggregated across derivatives exchanges has turned positive, after several negative spikes. The total open interest or value of all open derivatives contracts in Ether has reached $8.03 billion, according to Santiment data. Derivatives traders anticipate a recovery in Ethereum price.
On the other hand, institutional interest in Spot Ether ETFs does not show signs of growth, while whales off exchanges accumulate more Ether. This supports a bearish thesis for Ethereum and suggests that it may face challenges in institutional adoption compared to Bitcoin.
However, experts believe that Ethereum’s value proposition remains strong. The network has become a sophisticated financial ecosystem, processing over $30 billion in daily transactions across its Layer 2 networks. Short-term price movements overshadow the network’s growing adoption, but its robust infrastructure and proven utility indicate that Ethereum’s long-term trajectory is more about ecosystem growth.
Staked Ether has plateaued, with the percentage of Ethereum’s staking contract declining to 27%, the same level as in July 2024. This is the first significant drop since staking peaked at 29%. However, 33.5 million ETH remains staked, ensuring the security of the Ethereum network.
Despite the challenges, the long-term outlook for Ethereum remains bullish. The price is approaching a strong long-term support level, which institutional investors see as an attractive entry point for long-term accumulation. Institutional accumulation often precedes a market recovery based on long-term fundamentals. With other major cryptocurrencies reaching new all-time highs, ETH may experience a significant upward move once market sentiment shifts.
