Will ETH finally rebound decisively, or will there be another crash to new lows.
Ethereum continues to struggle to reclaim the coveted psychological level of $2,000, as each attempt in this direction results in subsequent rejection and correction.
Popular analyst Ali Martinez commented on the asset’s recent performance and explained that it was forming a bullish flag. However, there is a major problem in his message, which could actually spell trouble for ETH.
Ethereum $ETH forms a bullish flag!
There is only one twist… The theme is reversed. pic.twitter.com/Kb8eamJOMF
– Ali Charts (@alicharts) February 20, 2026
The “inverted” bull flag shows that ETH has actually been in a steady downtrend for weeks, but has recently managed to compress into a tighter range. Martinez believes a bigger move is on the way, but it could push the asset to new local lows of less than $1,400.
Daan Crypto Trades also discussed ETH’s disappointing performance of late, indicating that early 2026 has been worse than its early 2025 performance.
The analyst expressed hope that the largest altcoin could finally rebound in the coming months, as the March-May period is historically more beneficial to it.
$ETH Started the year worse than last year so far. Historically, March to May are good months for ETH.
But we know how much the market has moved recently and that there has been virtually no correlation with other risk assets.
It makes a horrible… pic.twitter.com/CBAfLTduHx
– Daan Crypto Trading (@DaanCrypto) February 21, 2026
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Another unfavorable development within the Ethereum investor ecosystem concerns net flows within spot ETH ETFs. Last week, the situation was in deficit again, with approximately $113 million out of the funds.
On the other side, BitMine continues to accumulate. The company chaired by Tom Lee purchased an additional 45,759 ETH last week and now holds 4,371,497 tokens, valued at nearly $8.7 billion. The company is down $8 billion on its Ethereum position, given its average entry cost of $3,820.
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