Ethereum Struggles Below $2,700 Despite Positive Market Metrics

Ethereum, one of the leading cryptocurrencies, remains below the $2,700 mark as recent market trends show a mixed yet cautiously optimistic picture for traders. Despite Bitcoin’s strong performance and a general rebound in the cryptocurrency market, Ethereum’s price has failed to make significant gains. Traders appear to be largely unfazed by ongoing concerns, including advances in artificial intelligence from China and tariffs proposed by U.S. President Donald Trump.

Ethereum Price Struggles Even as On-Chain Metrics Turn Bullish

Recent data from Santiment, an on-chain analytics tracker, reveals a growing number of Ethereum holders, with the total count reaching approximately 138.98 million, reflecting an increase of nearly 500,000 in just one week. This uptick in holder count supports a potentially bullish sentiment for Ethereum.

Additionally, the network’s realized profit/loss metric indicates significant trading activity, marked by large negative spikes between January 30 and February 8. Such activity is often interpreted as capitulation, with many traders opting to sell their Ether at a loss. This trend might suggest that traders are looking to switch their holdings to stablecoins or other cryptocurrencies, potentially setting the stage for a price recovery.

Moreover, the supply of Ethereum held by large wallet investors—often referred to as ‘whales’—has increased by almost half a million ETH tokens throughout February 2025. Metrics from derivatives markets also indicate a shift toward a more bullish sentiment, as the aggregate funding rate across derivatives exchanges has turned positive following a series of negative trends. The total open interest in Ethereum derivatives now stands at $8.03 billion, underscoring increased traders’ confidence in a possible price recovery.

Whales Accumulate Ether While Institutions Remain Indecisive

Recent insights from U.S. Spot Exchange Traded Fund (ETF) flows show no significant inflows or net changes to Ethereum ETFs over the past four trading days. Notably, Ethereum ETFs recorded a significant outflow of $22.5 million on February 10. Although whales have been accumulating more Ether off exchanges, institutional interest in Spot Ether ETFs seems sluggish, raising concerns about Ethereum’s immediate future compared to Bitcoin’s growing institutional support.

At the time of writing, Lookonchain data indicated a slight shift in institutional interest with $514,000 in net inflows, marking a cautious but positive development in the broader market context.

Experts Emphasize Ethereum’s Strong Value Proposition

In an exclusive interview with Crypto.news, Marcin Kazmierczak, co-founder and COO of blockchain startup RedStone, affirmed Ethereum’s strong fundamental value. He remarked that while Ethereum’s price is prone to market fluctuations, its underlying network has developed into a complex financial ecosystem, processing over $30 billion in daily transactions across various Layer 2 networks like Arbitrum, Base, and zkSync.

Kazmierczak emphasized that short-term price movements should not overshadow the network’s increased adoption, ranging from institutional liquid staking participation to the scaling solutions facilitating millions of transactions daily. He suggested that while the price of ETH might dip below $2,000, it ultimately hinges on overarching market dynamics.

Declining Staked Ether: A Bearish Signal?

Despite Ethereum’s foundational strengths, data from The Block indicates that the percentage of staked Ethereum has declined to 27%, reverting to levels last seen in July 2024. This drop follows a remarkable peak of 29% late last year. Currently, 33.5 million ETH remains staked, providing necessary security for the network.

The decrease in staking activity amidst rising opportunities within Layer 2 protocols hints at growing institutional interest in alternatives outside of Ether, presenting both opportunities and challenges for the Ethereum network’s future.

Long-Term Outlook for Ethereum Remains Bullish

Ruslan Lienkha, Chief of Markets at YouHodler, provided a broader perspective, suggesting that despite short-term bearish trends, Ethereum’s price is nearing a robust long-term support level. This situation may signal an attractive entry point for institutional investors seeking opportunities for gradual accumulation, often characteristic of impending market recoveries.

Historically, when institutional buyers accumulate positions based on long-term fundamentals, it often precedes price recoveries—indicative of potential upward movements for ETH, which has yet to reach its historical highs, while other cryptocurrencies have frequently set new records.

The ongoing dynamics within the cryptocurrency market showcase both challenges and opportunities for Ethereum and its holders. While caution persists in the short term, the long-term outlook remains resilient, bolstered by Ethereum’s continuing evolution and growing ecosystem.

Disclaimer: This article does not constitute investment advice. The content and materials featured herein are intended for educational purposes only.