ETH Bounces 10% As Massive Inflows Clash With Insider Selling

Ethereum price today trades near $1,924 after rebounding from a session low at $1,742, its lowest level since May 2025. The bounce comes alongside a rare flip to positive spot flows, but insider selling from Vitalik Buterin and Trump-linked $WLFI is raising questions about whether smart money believes the bottom is in.

Spot Inflows Flip Positive At $224 Million

Despite the insider selling, Coinglass data shows $224.27 million in spot inflows on February 6, marking a dramatic reversal from the outflows that dominated the past two weeks. This represents one of the largest single-day inflow readings in recent months.

The positive flow suggests some buyers view current levels as attractive entry points, even as high-profile figures reduce exposure. When spot flows flip positive during a crash, it can signal that selling exhaustion is approaching.

However, the contrast between insider selling and aggregate buying creates mixed signals. Retail or institutional accumulation may be offset by smart money distribution.

Daily Chart Tests Critical $1,800 to $2,000 Support Zone

On the daily chart, Ethereum has crashed into the $1,800 to $2,000 support zone highlighted in pink that has contained price since May 2025. This zone represents the final major support before the $1,300 level marked on the chart.

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Price trades well below all four major EMAs. The 20 day sits at $2,559, the 50 day at $2,848, the 100 day at $3,075, and the 200 day at $3,215. The Parabolic SAR remains bearish at $2,394.

The current price of $1,924 represents a decline of over 60 percent from the August 2025 highs near $5,000. The gap between current price and the nearest EMA at $2,559 shows the severity of the breakdown and the distance any recovery must travel.

Descending Channel Controls Short Term Direction

On the hourly chart, Ethereum trades within a descending channel that has guided the selloff since January 27. Channel resistance currently runs through $2,038, while the Supertrend indicator sits bearish at $2,038.

RSI has recovered to 45.63 from deeply oversold levels near 20 reached during the crash to $1,742. The indicator shows stabilization but remains below the neutral 50 level.

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The bounce from $1,742 to $1,972 represents a 13 percent recovery that needs to break above the descending channel resistance to signal any meaningful reversal. A rejection at the channel ceiling would target another test of the session lows.

Buterin And $WLFI Sales Spook Market Sentiment

High-profile selling is adding to investor uncertainty. Ethereum co-founder Vitalik Buterin moved to sell approximately $7 million in $ETH over the past few hours, according to blockchain tracking data. The timing drew immediate backlash from traders.

Crypto commentator Ted Pillows noted the sale on X, adding that somebody should tell Buterin to look at the $ETH chart. When a user replied that the sale made it appear Buterin was the only one not bullish on his own chain, Pillows responded that the timing feels notable.

Separately, World Liberty Financial, the crypto project backed by President Trump’s family, sold roughly $5 million worth of Bitcoin. The move came just days after Trump publicly stated he helped crypto more than anybody because he believes in it.

While Buterin’s transfers have historically been tied to donations, grants, and ecosystem funding, the timing during a crash sparks concern. Neither party has publicly detailed their motivation, leaving the market to speculate about whether insiders are de-risking.

Outlook: Will Ethereum Go Up?

The trend remains bearish while price trades within the descending channel, but the $224 million inflow suggests buying interest is emerging.

• Bullish case: A daily close above $2,394 would reclaim the Parabolic SAR and signal that the $1,742 low marked capitulation. The massive spot inflow could indicate selling exhaustion if the pattern continues.
• Bearish case: A close below $1,742 would break the May 2025 support zone and expose the $1,300 demand level. Insider selling from Buterin and $WLFI suggests smart money may not believe the bottom is in.

Ethereum needs to break the descending channel and see insider selling stop before any sustained recovery can form. Until then, the bounce remains a relief rally within a larger downtrend.

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