Ethereum (ETH) has recently been navigating turbulent waters, trading around $2,956 as of January 22, 2026, following a notable decline of approximately 24.6% over the past three months. The cryptocurrency’s journey has been fraught with difficulty as it lost crucial support above the $3,000 threshold, now testing the critical $2,700 demand zone.
In a stark reflection of shifting investor sentiment, the 21Shares Ethereum ETF (TETH) reported a staggering $10.56 million withdrawal in a single day, representing 39.3% of its total assets, which stood at $26.88 million. Such significant outflows not only illustrate the growing caution among investors but also mark one of the most considerable daily withdrawals relative to the fund’s size.
The prevailing market conditions have added pressure to Ethereum, which has struggled to build on its early January gains that saw prices hover in the mid-$3,000 range. Currently, the price oscillates under the weight of resistance at $3,500, while the downside brings attention to the imperative $2,700 support level. The 200-day moving average sits higher, around $3,800, suggesting a rough road ahead for ETH if bullish momentum does not re-establish itself.
ETF Flows Signal Shifting Sentiment
The market’s unfolding dynamics present a challenging scenario for Ethereum. If the price can sustain above $2,700, there remains a possibility for another rebound towards the $3,500 resistance. Conversely, a daily close beneath this demand zone might usher in even deeper pullbacks toward the ominous $2,200 level.
The technical picture has not been favorable; ETH was recently rejected from both the $3,500 resistance and the declining 100-day moving average—an indication that the current bearish trend is still intact. The watchful eyes of traders now remain fixed on the TETH outflows as liquidity constraints grow increasingly apparent.
#ETH is currently testing critical support levels, and while optimism remains, traders must consider the potential for more downside.
The 4-hour chart further delineates a breakdown from a prior rising channel, confirming an emerging downtrend characterized by lower highs and lows. Immediate resistance appears to hover around $3,000 to $3,100; failure to reclaim this territory risks reinforcing the downward momentum.
Market Indicators Point to Weakness
Compounding the bearish sentiment, the Coinbase Premium Index for Ethereum indicates significant panel difficulties, with persistent negative readings revealing a discount in ETH trading on Coinbase compared to leading exchanges like Binance. This discrepancy points to weaker demand and hesitance among U.S. institutional investors, suggesting the current decline is largely a product of technical rejection rather than a positive momentum shift.
As investors weigh their positions in the wake of such ETF outflows, there is a growing sense of prudence permeating the market. The large TETH withdrawal signals that many may be looking to mitigate risk after a prolonged period of underperformance, reshaping the fund’s investor base in the wake of ongoing volatility.
With momentum indicators leaning toward the downside, Ethereum’s technical landscape remains tenuous. The next few days will be critical as ETH seeks to either reclaim lost ground or face potentially deeper declines in the coming weeks.
