Ethereum (ETH) Bounces After 90% Selling Pressure Collapse — Bigger Move Coming?

Ethereum is showing early signs of recovery, climbing nearly 4% from a recent low near $1,840 as buyers step back in. The rebound has been building for weeks, with a symmetrical triangle on the short-term chart and a bullish divergence between price and the RSI suggesting selling pressure is fading.

Exchange inflows peaked near 1.06 million ETH on February 7 and have since dropped to roughly 126,000 ETH, a decline of almost 90%, even as price fell about 14%. At the same time, funding rates moved from slightly positive to around -0.02% while open interest remained mostly flat, indicating existing traders turned bearish and long positions likely exited.

Long-term holders moved from sustained net selling—peaking at more than 41,000 ETH sold—to recent net accumulation of over 6,000 ETH, a behavior often seen near local bottoms. With selling pressure reduced, bearish derivatives sentiment stretched, and experienced investors returning as buyers, the market becomes more vulnerable to a short squeeze and the bounce could extend further.

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