Ethereum price is trading around $1,924 today after rebounding from a session low of $1,742, the lowest since May 2025. This rally, accompanied by a rare reversal to positive spot flows, was fueled by Vitalik Buterin and Trump-related insider selling. $WLFI This raises questions about whether the smart money believes the bottom is in.
Spot inflow turns positive at $224 million
$ETH Netflows (Source: Coinglass)
Despite the insider selling, spot inflows on February 6 were $224.27 million, according to Coinglass data, marking a dramatic reversal from outflows that dominated much of the past two weeks. This represents one of the largest daily inflows in recent months.
The positive trend suggests that some buyers view current levels as an attractive entry point, even if high-profile numbers reduce exposure. If spot flows turn positive during a sell-off, it may indicate that a sell-off is near.
However, the contrast between insider selling and aggregate buying generates different signals. Accumulation by retail or institutional investors can be offset by smart money distribution.
Daily Chart Test Critical $1,800 to $2,000 Support Zone
$ETH Price dynamics (Source: TradingView)
On the daily chart, Ethereum has entered the $1,800-$2,000 support zone highlighted in pink that has held the price down since May 2025. This zone represents the last major support before the $1,300 level marked on the chart.
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Price is trading well below all four major EMAs. 20 days is $2,559, 50 days is $2,848, 100 days is $3,075, and 200 days is $3,215. Parabolic SAR remains bearish at $2,394.
The current price of $1,924 represents a drop of more than 60% from the August 2025 high of around $5,000. The difference between the current price and the nearest EMA at $2,559 indicates the severity of the collapse and the distance the recovery needs to reach.
Descending channel controls short-term direction
$ETH Price Action (Source: TradingView)
On the hourly chart, Ethereum is trading within a descending channel that has led to a decline since January 27th. The channel resistance is currently down to $2,038, while the supertrend indicator is bearish at $2,038.
The RSI has recovered to 45.63 from the highly oversold level near 20 reached during the crash to $1,742. The indicator shows stabilization but remains below the neutral 50 level.
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A rebound from $1,742 to $1,972 represents a 13% recovery and would require a break through the resistance of the descending channel to indicate a meaningful reversal. A rejection at the channel ceiling targets another test of the session low.
buterin and $WLFI Sales Spoke Market Sentiment
The high-profile selloff has increased investor uncertainty. Ethereum co-founder Vitalik Buterin made a sale for about $7 million. $ETH Over the past few hours, according to blockchain tracking data. The timing prompted an immediate backlash from traders.
Vitalik has sold another $6,700,000 in $ETH in the past few hours.
Somebody tell him to take a look at the ETH chart. pic.twitter.com/9UAM69rTNn
— Ted (@TedPillows) February 5, 2026
Cryptocurrency commentator Ted Pillows noted the X sale, adding that someone should tell Buterin to look at it. $ETH chart. When one user responded that the sale made it seem like Buterin was the only one not bullish on his chain, Pillows responded that the timing was notable.
Separately, World Liberty Financial, a cryptocurrency project backed by President Trump’s family, sold about $5 million worth of Bitcoin. The move comes just days after President Trump publicly stated that he supports cryptocurrencies more than anyone else because he believes in them.
Buterin’s move has previously been tied to donations, grants and ecosystem funding, but the timing of the crash has raised concerns. Neither party has publicly disclosed their motives, leaving the market to speculate on whether insiders are risk averse.
Outlook: Will Ethereum Rise?
While the price is trading within a descending channel, the trend remains bearish, but the $224 million inflow suggests that buying interest is emerging.
- Bullish case: A daily close above $2,394 would indicate a recovery in the parabolic SAR and a capitulation at the $1,742 low. If this pattern continues, large spot inflows could indicate a sell-off.
- Bearish case: A close below $1,742 would break the May 2025 support zone and expose the $1,300 demand level. Insider sales from Buterin and $WLFI This suggests that the smart money may not believe the bottom is in.
Ethereum needs to break out of the descending channel and stop insider selling before forming a sustained recovery. Until then, the rebound remains a relief rally within a larger downtrend.
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