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The Ethereum ETF’s four-week streak of inflows has finally been broken. The week ending February 18 recorded inflows, marking the first sign of a return in institutional demand. At the same time, the whales’ wallets are building up again. However, long-term holders continue to sell whenever the price of Ethereum rises.
This creates a direct conflict that can determine whether the Ethereum price recovery continues or stops.
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The end of the series of money flows from index funds and the beginning of the accumulation of large investors
Ethereum has suffered four consecutive weeks of institutional selling pressure. Ethereum spot ETFs recorded net inflows in the weeks ending January 23rd, January 30th, February 6th and February 13th. This continued selloff reflects weak institutional confidence and coincides with the broader decline in Ethereum’s price.
This trend is now changing. The week ended February 18 recorded a net inflow of $6.80 million. This change indicates that institutional selling pressure has stopped, at least temporarily. When fund inflows become positive after extended flows, this often indicates the beginning of stabilization. However, the numbers of inflows are still weak and the flows have not yet reached the strength of the flows.
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At the same time, the accumulation of whales returned. The data shows that portfolios containing large amounts of ethereum Their holdings have increased from 113.50 million ETH on February 15 to 113.63 million ETH currently. This represents an increase of 130 thousand ETH. At today’s price, this equates to about $253 million worth of Ethereum raised in just a few days.
The whales that accumulate during weak periods is important because large investors often sit before the start of a broader recovery. But this growing optimism is facing resistance from another group of investors.
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Ethereum price shows a bullish divergence, but long-term holders continue to sell
View 8-hour Ethereum price chart A major momentum signal that often precedes a price rally historically.
Between February 2 and February 18, the price of Ethereum hit a lower bottom, which means that the price fell below its previous support level. But during the same period, the Relative Strength Index (RSI) recorded a higher low. This indicator measures buying and selling strength and this pattern is called bullish convergence.
This signal has already proved effective twice before this month. The first bullish convergence was formed between February 2 and February 11, after which the price of Ethereum increased by 11%. The second convergence appeared between February 2nd and February 15th, triggering another 6% recovery.
The two eth price jumps happened while ETF flows were still going on, showing that buyers were indeed trying to regain control. Now, ETF flows are back, and the whales are piling up. This increases the likelihood of another jump attempt.
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Long-term investors move in the opposite direction. Hodler’s net position change measures whether long investors are accumulating or selling. A negative value means that long-term investors are shedding their holdings.
On February 17, long-term investors sold a total of 34,841 eth in the previous 30-day period. By February 18, that number had grown to 38,877 eth. This represents a sharp increase in selling pressure in a single day, even as signs of bullish convergence emerge.
This shows that long-term investors are using price strength to exit their positions. The same behavior was seen during the previous February spikes. The previous two rebounds were unable to sustain upward momentum due to selling by long-term investors, which limited the recovery.
This creates an obvious conflict. Whale accumulation and ETF inflows are supporting the recovery, while selling by long-term investors is limiting upside potential, indicating a clear risk. This inconsistency is now directly reflected in Ethereum’s price structure.
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The triangle pattern reveals critical levels
Ethereum is currently trading in a symmetrical triangle pattern on the 8-hour chart. This pattern is formed when the price moves between converging support and resistance lines.
A symmetrical triangle represents a balance between buyers and sellers. In the case of Ethereum, buyers include whales and institutional investors who return through… Index Fund ETF Flows. Sellers include long-term holders of the currency who distribute their positions.
This balance explains why Ethereum remains in a state of pooling.
It is the first major resistance level near $2,030, as this level stopped the previous attempt at recovery. The success of crossing this level will indicate the strengthening of the momentum and also confirm a meeting of the triangle. The next major resistance level is at $2,100, which is another obstacle to a rebound. Breaking this level will confirm a stronger recovery and can open the way.
However, downside risks remain. Be the immediate recovery level at $1,960. Failure to hold this level could push Ethereum to $1,890. The decline could extend deeper towards $1,740 if selling pressure accelerates.
