Ethereum price has fallen from its recent consolidation range around $2,800 as fresh outflows from exchange-traded funds and weak trader positions weighed on near-term momentum.
summary
- ETF outflows have returned and Ethereum has fallen below a major consolidation zone.
- Derivatives data showed that traders were reducing risk rather than increasing leverage.
- Technical signals indicate increasing downside pressure below key resistance levels.
Ethereum is trading at $2,739 at the time of writing, down 8% in the past 24 hours. Despite an 81% increase in 24-hour trading volume to $42.8 billion, the second-largest cryptocurrency is currently down 8% over the past week and nearly 10% over the past month, indicating increased activity on the downside.
Derivatives show that traders are reducing risk rather than adding leverage. According to CoinGlass data, Ethereum ($ETH) Futures volume rose 55% to $90.55 billion, but open interest fell 11% to $34.29 billion.
This combination reflects intense position turnover and prolonged liquidations, with traders forced to close or exit existing bets instead of building new exposure.
ETF outflows weigh on short-term demand
usa spot $ETH The ETF returned to net outflows on Jan. 29, with $155 million out of the product in a single session, according to SoSoValue data. Fidelity’s FETH posted $59.19 million in redemptions, while BlackRock’s ETHA lost $54.88 million. Weekly outflows now stand at $74 million.
ETF flows are currently playing a large role in shaping Ethereum’s short-term price action. This is because ETF flows reflect the magnitude of traditional investor positioning. As capital flows out of these funds, stable spot demand declines and issuers may have to sell. $ETH Putting more pressure on an already fragile session to cover redemptions.
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In addition to ETF outflows, the recent decline in the Coinbase Premium Index indicates limited interest from U.S. traders. $ETH Drifting in a narrow area.
Market sentiment has been further tense by network-related headlines. While talk of quantum-resistant upgrades has focused attention on long-term security issues, reports of potential large-scale poisoning attacks have raised new concerns about user safety.
None of these issues pose an immediate threat to Ethereum’s operations, but together they add to the cautious mood at a time when trader confidence is already weakened.
Ethereum price technical analysis
Ethereum’s drop below the $2,800-$2,900 area confirms that the recent consolidation has broken down. This zone had been suppressing prices for several weeks, but its loss signals that sellers have regained control.
The short-term structure remains downward. $ETH continues to form lower highs, with recent attempts at a rebound fading around $3,050-$3,100, with selling pressure still strong.
$ETH ETF reduced by $155M – 1″>
Ethereum daily chart. Credit: crypto.news
The price is currently below the short-term moving average and has peaked at the middle Bollinger Band around $3,070. only for $ETH If it breaks below this level, the rally is likely to encounter resistance.
After a long period of tough trading, volatility is rising. The Bollinger Bands are starting to head down, confirming the recent break from the range. The Relative Strength Index is currently in the low 40s, indicating weakening momentum.
This suggests that although there is bearish pressure, it is not yet a deep sell-off and could fall further before buyers intervene. The $2,700 area, which corresponds to the lower Bollinger Band and recent lows, provides the first notable support on the downside.
To improve the outlook, $ETH It will need to rise above $2,950-$3,000 and maintain that area at the daily close. Once through this zone, the breakdown will be invalidated and $3,100 will return to focus.
Until that happens, the trend will be down, and most rebounds are likely to be short-lived rather than the start of a new uptrend.
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