U.Today - Ethereum (ETH), the leading altcoin, began the week with bullish momentum, with the price hitting over $2,700. Some market participants think the recent surge is just the beginning, as Ethereum will soon experience a major rebound.
Factors pointing to Ethereum’s recovery
Taking to social media platform X, Santiment, a top data analytics platform, made a bullish case for Ethereum. Santiment pointed out that Ethereum has shown mild signs of a rebound, as seen in its value reaching $2,745 on Monday.In addition, ETH has outpaced most altcoins, including Solana (SOL), XRP and Binance Coin (BNB) since the beginning of the week.
Santiment noted that Ethereum also demonstrates long-term bullish performance, currently backed by continuous movement from exchanges into cold wallets. Notably, 0.83% of Ethereum’s total supply has moved off exchanges in the past two weeks.
These transfers show that investors are confident about ETH’s future and willing to hold the coin long term. Also, it decreases the probability of a major upcoming sell-off. As revealed by Santiment, only 6.38% of Ethereum’s supply is available on exchanges (the lowest since its genesis).
Rising investor interest
Another key metric suggesting an imminent rally for Ethereum is social dominance. This metric reveals that Ethereum gained increased attention in community discussions in February. According to Santiment, 9.2% of all coin discussions this month are about Ethereum.On Monday, Ethereum became the top-traded asset on Coinbase (NASDAQ:COIN), surpassing Bitcoin (BTC), Solana and XRP. This marks a huge milestone for Ethereum, as it is the first time the asset has hit this record since 2022.
Ethereum’s recent rebound follows bearish performance in 2024. At the time, ETH became a major under-performer relative to other large-cap coins. However, with the recent improvements, community members are hopeful ETH will see a major rebound once market momentum picks up.
Moreover, rising investors’ interest in Ethereum is indicated by the impressive daily trading volume of the altcoin. This metric increased by over 100% to $25 billion.
The upcoming Pectra upgrade may have also contributed to the rising ETH discussions. Pectra is set to debut on the Holesky testnet on Feb. 24, while Sepolia activation will happen in early March.