The price of Ethereum (ETH) has experienced a setback of more than 5% in recent days, piercing a short-term technical structure that acted as vital support. After failing to hold above 1,980 dollars on February 10, Ethereum whale accumulation has become the only factor slowing down a major capitulation of the digital asset.
This downward movement coincides with a drastic reduction in activity within the decentralized finance sector, where the Total Value Locked (TVL) plunged from 75.6 billion to 55.5 billion dollars. According to analysts, this structural weakening has caused the flow of cryptocurrency toward exchanges to increase, raising immediate selling pressure on the ecosystem.
Institutional weakness and breakdown of technical patterns
The recent recovery in early February, which seemed promising, turned out to be a “bear flag” formation that lacked backing from institutional capital. The Chaikin Money Flow (CMF) indicator remained persistently below zero, revealing that, although the price rose slightly, Ethereum whale accumulation was not robust enough to validate a real trend change.
Because smart money did not accompany the rebound, sellers quickly regained control as retail momentum exhausted near key resistance levels. This disconnect between price and real money flow underlines a structural problem, where the use of the blockchain network has significantly decreased, reducing incentives to maintain large-volume long positions.
Likewise, the relationship between TVL and exchange flows shows a worrying pattern for medium-term investors. Historically, when capital leaves DeFi protocols, ETH inflows to exchanges tend to skyrocket, suggesting that users are preparing their assets for a potential liquidation, which increases volatility and the risk of further declines.
Why are large holders defending the 1,800 dollar level?
Despite negative technical indicators, Santiment data reflects that large-sized wallets have stopped their distribution phase in the last 24 hours. This pause suggests that Ethereum whale accumulation is attempting to establish a psychological floor in a zone of high concentration of buy orders, specifically located between 1,879 and 1,898 dollars.
Around 1.36 million ETH were acquired in this price range, making it a “cost cluster” that large investors have incentives to defend. However, a confirmed break below 1,845 dollars could invalidate this support, triggering a cascade of sales that would take the price toward levels not seen since last year on the network.
Therefore, the current behavior does not seem to be a bet on an immediate rally, but rather a defensive maneuver to avoid greater capital losses. As long as the asset fails to recover the 2,150 dollar level, any upward attempt will be viewed with skepticism, as uncertainty about real protocol usage continues to weigh on general market sentiment.
As a result, monitoring network usage metrics will be essential over the coming weeks to confirm a sustainable recovery. In this way, analysts expect to see if the stabilization of Total Value Locked, accompanied by a positive money flow in the CMF, allows Ethereum to regain its appeal compared to other digital assets.
Finally, the outlook for Ethereum remains cautious, with critical supports being constantly tested by macroeconomic pressure. If Ethereum whale accumulation fails to sustain the current demand zone, the market could face a more severe adjustment, placing investors’ sights on much deeper bearish targets during the quarter.
