Ethereum (ETH) is forming a bullish flag, but there’s a big catch: analyst

Will ETH finally rebound decisively, or will another crash to new lows occur.

Popular analyst Ali Martinez weighed in on the asset’s recent performance, explaining that it represents a bullish flag. However, there is a big catch to his post, which could actually spell trouble for ETH.

Ethereum $ETH forms a bullish flag!

There’s only one twist… The card is reversed. pic.twitter.com/Kb8eamJOMF

— Ali Charts (@alicharts) February 20, 2026

The “reverse” bullish flag shows that ETH has been in a consistent downtrend for weeks, but has recently managed to compress into a tighter range. Martinez believes a bigger move is in the works, but this one could push assets to a new local low below $1,400.

Daan Crypto Trades also brought up ETH’s disappointing performance lately, indicating that early 2026 has been worse than early 2025.

The analyst expressed hope that the largest altcoin could finally recover in the coming months, as the March to May period is historically more favorable for it.

$ETH The year has started worse so far than last year. Historically, March through May are good months for ETH.

But we know how the market has been all over the place lately and there is virtually no correlation with other risky assets.

This makes for a terrible… 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 spot ETH ETFs. Last week it was in the red again, with about $113 million leaving the fund.

On the other hand, BitMine continues to accumulate. The company chaired by Tom Lee bought last week another 45,759 ETH, and now owns 4,371,497 tokens, worth almost $8.7 billion. The company is down $8 billion from its Ethereum position, given the average entry cost of $3,820.