Ethereum’s Recent Strength: Has It Finally Bottomed?

While the overall crypto market remains relatively weak—Bitcoin stuck in a two-week consolidation and altcoins falling—Ethereum has been quietly impressive.

Over the past couple of weeks, Ethereum has shown positive momentum, with sentiment improving and the ETH Fear & Greed Index shifting back to neutral from fear. Price appears to have found a bottom around $2,500, now trading nearly 10% higher from that level just ten days ago. Meanwhile, Bitcoin remains at the bottom of its range, and direct competitor Solana has struggled to find a base, continuing its decline—down almost 20% in the last two weeks.

Is It Time to Rotate Into Ethereum?

Ethereum has underperformed the market for much of this cycle, with Bitcoin and Solana both reaching all-time highs recently. Despite being 40% below its 2021 all-time high, Ethereum looks extremely undervalued and may now be setting up for a significant move, positioning itself to lead the market.

In the last 24 hours, Ethereum has outperformed Bitcoin by 3.50%, trading at 0.0285 BTC after seemingly forming a bottom against Bitcoin over the past two weeks. This base developed around 0.027 BTC, and for Ethereum to turn bullish against Bitcoin, the ratio needs to break the recent lower high at 0.0327 BTC.

While it's too early to call a major rotation from Bitcoin into Ethereum, Solana is a different story.

Ethereum has significantly outperformed Solana—up nearly 10% in the last 24 hours—and has now broken out against it. The ETH/SOL ratio trades at 15.5, up from its lows and now 22% higher over the last month.

Sentiment around Solana has turned negative, largely due to the upcoming Solana unlock next month, which will see $2 billion worth of SOL (2.29% of total supply) enter the market. The market is already reacting to this, with Solana continuing to sell off—suggesting this event may be getting priced in.

While a Bitcoin-to-Ethereum rotation remains premature, moving from Solana into Ethereum appears to be the right play given current market conditions.

Oh, and Bitcoin is still stuck in the same range it’s been in for the past two weeks.

Stormrake Spotlight: Ondo Finance (ONDO) ($1.28)

As Bitcoin slips lower, Ondo follows, finally breaking below the 0.382 Fib level after the seventh attempt. We now look to the $1.15 region, where the 200EMA and monthly CPR support align. If this level is reached, Bitcoin would likely be in the low $90k range, which wouldn’t be great for the broader market.

BTC/USD Key Levels and Price Action:

Bitcoin looks slightly worse than yesterday, currently sitting just below the key $95.7k level after failing to reclaim the moving averages. This is not a good sign, as downward pressure from the moving averages could push BTC lower, potentially breaking the range. If this range breaks, expect Bitcoin to test $92.5k.

BTC Total ETF Flows for 17 Feb: $ (data not available)

ETH/USD Key Levels and Price Action:

Ethereum has performed well over the last 24 hours, reaching $2,850 and outperforming much of the market. However, it fell just shy of the key resistance level at $2,865 before retracing. It is now trading at the cluster of moving averages in the middle of its range, which should provide support and fuel another bounce attempt towards resistance above.

ETH Total ETF Flows for 17 Feb: $ (data not available)

*All prices are denominated in USD unless stated otherwise*

Written by Alexandar Artis

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