Ethereum’s bearish positioning deepens: Is strategic whale rotation why?

On the 15th of February 2026, Garrett Jin deposited 261,024 ETH worth about $543 million to Binance, executing transfers in fragmented batches.

This structure minimized slippage while signaling intentional sell-side preparation. Around the same period, he had already sold 5,000 BTC for roughly $349 million, reinforcing a broader de-risking shift.

His intent aligned with volatility management after a $250 million liquidation during January’s leveraged Ethereum [ETH] long unwind.

Position reduction therefore reflected capital preservation rather than opportunistic rotation. Weekend timing also suggested sensitivity to thinner liquidity and amplified execution impact.

As inflows hit Binance, ETH hovers near $2,080–$2,100, reflecting fragile support. Investors reacted cautiously, pricing potential supply pressure toward $1,800–$2,000.

Sentiment weakened in the short term, while derivative positioning leaned defensive amid whale-driven distribution risk.

Following Garrett Jin’s move, the sentiment in derivatives coincided with an increase in sell aggression. As flows settled, the taker buy-sell ratio’s 30-day average fell to 0.97, its lowest since November 2025.

Rather than causing the shift alone, his move reflected an already deteriorating derivatives backdrop. Aggressive market sales had begun outpacing buys while the price slipped from $3,200 toward $2,000.

This alignment suggested correlation, not singular influence.

As traders observed whale inflows, conviction eroded and hedging activity increased. Sellers dominated execution flow, reinforcing defensive positioning.

The sentiment derailment therefore stemmed from combined whale de-risking, fragile support, and structurally weakening future demand.

Whales absorb dip supply as reserves hit multi-year lows

Ethereum Exchange Reserves declined to roughly 16.2 million ETH, marking levels last seen around 2016. This extended drop from nearly 35 million ETH in 2021 reflected sustained supply compression.

As reserves tightened, available sell-side liquidity diminished, reinforcing scarcity dynamics.

Meanwhile, Exchange Netflows recorded deep negative spikes, including outflows exceeding 214,600 ETH in early February 2026. These sustained withdrawals signaled large holders moving assets off exchanges.

Such behavior implied tactical rotation into custody, staking, or long-term positioning.

As the price hovered near the $2,000 zone, whales appeared to absorb capitulation-driven supply. This repositioning reduced downside liquidity while stabilizing volatility conditions.

If outflows persist alongside shrinking reserves, supply shock conditions could emerge, supporting recovery toward $2,400 and higher resistance zones.

Final Summary

• Garrett Jin’s $543 million ETH deposit reflected defensive de-risking, not isolated market influence, as derivatives data already showed weakening sentiment and rising sell aggression.
• Despite short-term bearish pressure, shrinking reserves and heavy outflows signaled whale accumulation, tightening supplies, and preserving medium-term recovery potential.