Ethereum Price Struggles Amidst Bullish On-Chain Metrics

Ethereum’s price performance remains underwhelming, despite the broader crypto market and top altcoins rebounding. However, sentiment among traders has turned positive, according to data provider Cryptoeq. This could potentially change the tide for the largest altcoin.

Ethereum’s Holder Count and Network Metrics Turn Bullish

Ethereum’s holder count has continued to rise steadily, according to on-chain data from intelligence tracker Santiment. The number of Ethereum holders climbed to 138.98 million, marking an increase of nearly 500,000 new Ether 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 large negative spikes between Jan. 30 and Feb. 8. A large number of traders selling ETH at a loss is typically considered a sign of capitulation. Ethereum traders may be exchanging their ETH for stablecoins or other cryptocurrencies, which could signal a potential price recovery in the near future.

Whales Accumulate Ether, Institutions Remain Indecisive

Ethereum supply held by whales or large wallet investors, excluding exchange wallets, has climbed by nearly half a million ETH tokens in February 2025. However, institutional interest in Spot Ether ETFs does not show signs of growth, according to U.S. Spot Exchange Traded Fund flows from Farside Investors. This supports a bearish thesis for the altcoin and Ethereum likely faces an uphill battle when it comes to institutional adoption, compared to Bitcoin.

However, Lookonchain data shows that institutional interest is slowly shifting, with $514,000 in net inflows at the time of writing on February 11.

Experts Weigh In on Ethereum’s Value Proposition

Marclin Kazmierczak, Co-founder & COO of blockchain startup RedStone, says:

“While ETH’s price may fluctuate with broader market sentiment, its fundamental value proposition remains strong. The network has evolved into a sophisticated financial ecosystem, processing over $30 billion in daily transactions across its Layer 2 networks like Arbitrum, Base, and zkSync.”

Staked Ether Plateaus Amidst Institutional Focus on Bitcoin

Data from The Block shows that the percentage of ETH staked in Ethereum’s staking contract has declined to 27%, returning to levels last seen in July 2024. Currently, 33.5 million ETH remains staked, ensuring that the Ethereum network remains secure despite this decline.

Ethereum’s Long-Term Outlook Remains Bullish

Ruslan Lienkha, Chief of Markets at YouHodler, says:

“While the short-term outlook for Ethereum appears bearish, a broader perspective reveals that its price is approaching a strong long-term support level. This suggests that, despite current market weakness, institutional investors see an attractive entry point for long-term accumulation.”

Historically, such accumulation by institutional players often precedes a market recovery, as these investors tend to take positions based on long-term fundamentals rather than short-term price fluctuations.

Tips for Investors:

  • Keep an eye on Ethereum’s on-chain metrics, such as holder count and network realized profit/loss.
  • Monitor institutional interest in Spot Ether ETFs and staking contracts.
  • Consider the long-term value proposition of Ethereum’s financial ecosystem.

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