Investing in ETHUSD on current slump before momentum picks up after selloff ends

ETHUSD has been moving within a downtrend for a third session, hitting $1,970 during early trading on Thursday. This decline was primarily triggered by a massive sell-off by major holders, or so-called whales. With a balance of over 1,000 ETH, they reduced their stake to below 75% for the first time in seven months. Since December, these investors have sold assets equivalent to 1.5% of the total Ether supply.

The current macroeconomic situation in the United States is darkening market sentiment. The recent Nonfarm Payroll (NFP) report, released on Wednesday, exceeded expectations, solidifying the Federal Reserve’s (Fed) intention to keep interest rates unchanged until July. Previously, the first cut was projected for June. Higher borrowing costs traditionally reduce market interest in risky assets, including cryptocurrencies.

The ongoing bearish trend has not yet been reversed, even by such positive initiatives as the launch of the Trillion Dollar Security Ethereum Foundation project in collaboration with SEAL and the integration of Chainlink into Ondo Finance.

On the flip side, cold wallets have seen an inflow of assets worth $2.6 billion since Friday. This may be a sign of traders’ confidence in Ethereum over the long run. However, historically, such splashes usually precede a rally with a lag of a few weeks.

From a technical standpoint, the $2,000 support level has just transformed into resistance. ETHUSD is now shakily consolidating near $1,970, with buyers clawing back the initiative after the recent rebound from $1,749 but still facing strong selling pressure. The Stochastic Indicator reveals a bearish crossover of its lines, suggesting a short-lived correction or further flattening. The Chaikin Oscillator remains positive, signaling accumulation of positions and bulls’ attempts to take the crown.  This favors a scenario of buildup by major players ahead of a potential explosive move.

Consider the following trading strategy:

Buy ETHUSD during the current slump, with Take profit 1 at $2,150, Take profit 2 at $2,300, and Stop loss at $1,740.

The forecast is valid from February 12 till February 19, 2026.