Ethereum ETFs Break 4-Week Outflow Streak — Can ETH Price Finally Recover?

Ethereum has lastly damaged a four-week streak of steady ETF outflows. The week ending February 18 recorded inflows, marking the primary signal of returning institutional demand. At the identical time, whale wallets have began accumulating once more. Yet long-term holders proceed promoting into each Ethereum worth bounce.

This creates a direct battle that would determine whether or not Ethereum’s worth restoration continues or stalls.

ETF Outflow Streak Ends as Whale Accumulation Begins

Ethereum spent 4 straight weeks beneath constant institutional promoting strain. Spot Ethereum ETFs recorded web outflows within the weeks ending January 23, January 30, February 6, and February 13. This sustained promoting mirrored weak institutional confidence and coincided with Ethereum’s broader worth decline.

That pattern has now modified. The week ending February 18 noticed a web influx of $6.80 million. This shift suggests institutional promoting strain has paused, at the very least briefly. When ETF flows flip optimistic after prolonged outflows, it usually alerts early levels of stabilization. However, the influx figures are nonetheless weak and never at par with the outflow energy, but.

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At the identical time, whale accumulation has returned. Data reveals wallets holding massive quantities of Ethereum increased their holdings from 113.50 million ETH on February 15 to 113.63 million ETH presently. This represents a rise of 130,000 ETH. At the present worth, this equals roughly $253 million value of Ethereum gathered in only a few days.

Whale accumulation throughout weak spot is essential as a result of massive traders usually place early earlier than broader recoveries start. However, this rising optimism faces resistance from one other group of traders.

Ethereum Price Flashes Bullish Divergence, But Long-Term Holders Continue Selling

Ethereum’s 8-hour chart reveals a key momentum sign that has traditionally preceded worth bounces.

Between February 2 and February 18, Ethereum’s worth shaped a decrease low. This means the value dropped under its earlier assist stage. But throughout the identical interval, the Relative Strength Index (RSI) shaped the next low. The RSI measures shopping for and promoting energy and this sample is named bullish divergence.

This sign has already confirmed efficient twice earlier this month. The first bullish divergence shaped between February 2 and February 11. Ethereum’s worth then rallied 11%. The second divergence appeared between February 2 and February 15. This led to a different 6% restoration.

Both these ETH bounces occurred whereas ETF outflows have been nonetheless ongoing, displaying that patrons have been already trying to regain management. Now, ETF inflows have returned, and whales are accumulating. This will increase the chance that one other bounce try may occur.

However, long-term holders are shifting in the wrong way. The Hodler Net Position Change measures whether or not long-term holders are accumulating or promoting. A unfavourable worth means long-term holders are distributing their holdings.

On February 17, long-term holders offered 34,841 ETH over the rolling 30-day interval. By February 18, that quantity elevated to 38,877 ETH. This represents a pointy enhance in promoting strain in simply sooner or later, at the same time as bullish divergence alerts appeared.

This reveals long-term holders are utilizing worth energy to exit positions. The similar conduct was seen throughout earlier February rallies. Both earlier bounces didn’t maintain upward momentum as a result of long-term holder promoting capped the restoration.

This creates a transparent battle. Whale accumulation and ETF inflows assist restoration, whereas long-term holder promoting limits upside potential, hinting at a transparent danger. This battle is now mirrored immediately in Ethereum’s worth construction.

Triangle Pattern Reveals Critical Levels

Ethereum is presently buying and selling inside a symmetrical triangle sample on the 8-hour chart. This sample kinds when the value strikes between converging assist and resistance strains.

A symmetrical triangle represents stability between patrons and sellers. In Ethereum’s case, patrons embrace whales and institutional traders returning via ETF inflows. Sellers embrace long-term holders distributing their positions.

This stability explains why Ethereum stays caught in consolidation.

The first key resistance stage sits close to $2,030. This stage stopped the earlier restoration try. A profitable transfer above this stage would sign strengthening momentum and likewise affirm the triangle breakout. The subsequent main resistance stands at $2,100, one other bounce blocker. Breaking this stage would affirm a stronger restoration and will open the trail greater.

However, draw back dangers stay. Immediate reclaim stage sits at $1,960. Failure to carry this stage may push Ethereum right down to $1,890. A deeper decline may prolong towards $1,740 if promoting strain accelerates.

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