Ethereum (ETH) Forms a Bullish Flag, But There’s a Major Catch: Analyst

Is ETH finally going to rebound decisively, or will there be another crash to new lows.

Ethereum continues to struggle to reclaim the coveted $2,000 psychological level, as each attempt to do so results in a subsequent rejection and correction.

Popular analyst Ali Martinez weighed in on the asset’s recent performance and explained that it’s forming a bullish flag. However, there’s a major catch in his post, which could actually mean trouble ahead for ETH.

Ethereum $ETH is forming a bullish flag!

There’s just one twist… The chart is inverted. pic.twitter.com/Kb8eamJOMF

— Ali Charts (@alicharts) February 20, 2026

The “inverted” bullish flag shows that ETH has actually been in a consistent downtrend for weeks, but it has managed to compress within a tighter range more recently. Martinez believes a bigger move is in the making, but it could push the asset to new local lows of under $1,400.

Daan Crypto Trades also brought up ETH’s underwhelming performance as of late, indicating that the start of 2026 has been worse than how it moved in early 2025.

The analyst outlined hopes that the largest altcoin could finally rebound in the following few months, since the March-to-May period is historically more beneficial for it.

$ETH Has started the year of worse than last year so far. Historically, March through May are good months for ETH.

But we know how the market is all over the place recently and that there’s been pretty much zero correlation with other risk assets.

This makes for an awful… pic.twitter.com/CBAfLTduHx

— Daan Crypto Trades (@DaanCrypto) February 21, 2026

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Another unfavorable development within the Ethereum investor ecosystem is the net flows within the spot ETH ETFs. Last week was in the red once again, with roughly $113 million leaving the funds.

On the opposite side, BitMine continues to accumulate. The Tom Lee-chaired company bought another 45,759 ETH last week, and now holds 4,371,497 tokens, valued at almost $8.7 billion. The company is down $8 billion on its Ethereum position, given its average entry cost of $3,820.