ETHEREUM DROPS BELOW $3K AS $238M SPOT ETH ETF OUTFLOWS RAISE CONCERNS
Ethereum’s price dipped below the key psychological level of $3,000 as selling pressure picked up across both spot and derivatives markets.
At the time of writing, ETH was trading around $2,978, down 4.6% over the past 24 hours. While the token has gained 1.7% over the past month, it has fallen approximately 10% in the last seven days. Trading activity surged, with 24-hour spot volume rising 58% to $34.3 billion, reflecting increased market participation during the decline.
Derivatives activity also showed heightened movement. Ethereum derivatives volume increased 65% to $74.9 billion, while total open interest fell 2% to $39.37 billion, according to CoinGlass data. This pattern often indicates that traders are closing positions amid uncertainty rather than opening new leveraged trades.
ETF Outflows Weigh on Ethereum Price, But Exchange Supply Keeps Declining
Spot Ethereum exchange-traded funds (ETFs) saw a notable reversal in flows, raising short-term concerns for ETH prices. Data from SoSoValue indicates that U.S. spot ETH ETFs recorded net outflows of $229.95 million on January 20, ending a five-day streak of inflows.
BlackRock’s ETHA led the exits with $92 million withdrawn, followed by Fidelity’s FETH ($51 million) and Bitwise’s ETHW ($31 million). Grayscale’s ETHE and Mini ETH products collectively lost close to $50 million.
Despite these daily outflows, monthly net flows remain positive at $359 million. Significant single-day outflows can temporarily weigh on prices by reducing spot demand and lowering near-term market confidence.
Exchange Reserves Signal Limited Selling Pressure
On-chain data suggests that underlying selling pressure remains moderate. According to CryptoQuant contributor Arab Chain, Ethereum exchange reserves have dropped to around 16.2 million ETH, the lowest level since 2016.
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Binance reserves have also steadily declined, from roughly 4.17 million ETH at the start of 2026 to about 4.0 million ETH. This trend reflects long-term holding patterns, which may help support Ethereum prices over the medium to long term.
Ethereum Price Technical Analysis
Ethereum’s price structure weakened after dropping below the $3,000 mark, which had previously acted as short-term support. The recent rally peaked near $3,400, rejecting the upper Bollinger Band, before gradually moving toward the middle of the band.
Currently, Ethereum has fallen below the 20-day moving average, a level that previously limited pullbacks, suggesting that short-term bullish momentum is fading. After weeks of narrow trading, volatility is rising, indicating a more active phase in the market.
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Momentum and Support Levels
Momentum indicators confirm easing bullish control. The relative strength index (RSI) has slipped into the low 40s, signaling a decline in momentum, although Ethereum is not yet in oversold territory.
Key support zones to watch:
- $2,900–$2,950: Previous demand and lower Bollinger Band
- $2,750–$2,800: If $2,900 breaks, next major support range
Potential Upside
A recovery above $3,000 and surpassing short-term moving averages could strengthen the technical structure, allowing Ethereum to target $3,200 in the near term.
