The largest altcoin, Ethereum (ETH), has experienced a rare movement in the last 24 hours, breaking out of the market. The ETH price surged past $2,800 to reach a 12-day high, but this increase was short-lived.
Analyzing the current situation of Ethereum, Santiment noted that although the Ethereum price has retreated, this movement signals that ETH is showing signs of recovery. Analysts emphasized the importance of long-term thinking for ETH, stating that ETH continues to transition from exchanges to cold wallets at a remarkable pace.
This situation suggests that investors are not considering selling and are adopting a long-term holding strategy. Santiment predicts that Ethereum will possess greater upward potential during a general market recovery.
“Ethereum has shown signs of a slight recovery. Although the price has since pulled back, it has outperformed most altcoins to start the week. From a long-term perspective, ETH continues to move out of exchanges and into cold storage at a shocking rate.
“Generally speaking, when crypto assets leave centralized exchanges, it’s usually a sign that investors are holding on. And it reduces the likelihood of a major sell-off.”
Santiment recently observed a renewed interest in Ethereum, stating, “Meanwhile, the community started showing renewed interest in Ethereum in February. After significantly underperforming other large-cap assets in 2024, there was an expectation of a recovery as the market-wide recovery began.”
Altcoin Rally Depends on Ethereum!
While Santiment analysts present an optimistic outlook for Ethereum, popular analyst Ali Martinez has announced a critical level for ETH. In a major prediction, the analyst asserted that if ETH falls below $2,600, the altcoin rally will not materialize.
In his post on the X account, the analyst stated that if Ethereum falls below $2,600, there will be no altcoin season.
Altseason will be canceled if
#Ethereum
$ETH
fails to hold $2,600!
pic.twitter.com/slt2O02Waq
— Ali (@ali_charts)
February 18, 2025
*This is not investment advice.
