January 21 News, Ethereum’s price fell below the psychological level of $3000 under multiple selling pressures, with ETH dropping to around $2978 at one point, a 24-hour decline of 4.6%. Although it has seen a slight increase over the past month, the recent week has experienced a cumulative drop of over 10%. Trading volume has expanded to approximately $34.3 billion, indicating a significant increase in capital turnover during the downward movement and a market sentiment that is becoming more cautious.
The derivatives market also signals a cooling trend. Data shows that Ethereum futures trading volume has surged significantly, while open interest has slightly decreased, which often indicates traders are reducing leverage during increased volatility rather than increasing directional bets. This behavior is common in phases where the trend is not yet clear.
Spot ETF capital flows have exerted direct pressure on the short-term trend. The US spot Ethereum ETF experienced a net outflow of about $230 million on January 20, ending several days of capital inflows. Products from multiple issuers have seen varying degrees of capital withdrawal, which in the short term weakens spot buying and suppresses ETH prices. However, from a monthly perspective, these products still maintain a net inflow, suggesting that some medium- to long-term funds have not yet fully exited.
On-chain data presents a different picture. According to a report by CryptoQuant analyst Arab Chain, the on-chain available balance of Ethereum has fallen to multi-year lows, reflecting that a large amount of ETH has been transferred to cold wallets or long-term storage. This structure often indicates that selling pressure is being compressed, and if market sentiment improves, the tightening liquidity could amplify a rebound.
From a technical standpoint, the $3000 level has shifted from support to short-term resistance. The price has broken below the 20-day moving average, and momentum indicators are weakening. If the decline continues, around $2900 will become a critical area for bulls to defend; if ETH can regain and hold above $3000, the market may attempt to rally back toward $3200. Currently, ETH is in a key battle zone dominated by sentiment and capital flows.
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