Ethereum rebounded on the 26th of January, posting $117 million in net inflows into U.S. spot Ethereum ETFs. Fidelity dominated the session, recording $137 million in inflows and snapping a four-day outflow streak.
By contrast, BlackRock registered net outflows on the day. That divergence highlighted selective institutional positioning rather than broad-based accumulation.
The reversal in ETF flows followed multiple sessions of sustained outflows. That shift left traders focused on whether institutions were rebuilding exposure or executing short-term reallocations.
Even so, inflows alone did not guarantee immediate price expansion.
Ethereum network fees hit multi-year lows
Glassnode data showed Ethereum’s Total Transaction Fees fell to their lowest level since May 2017 on the 27th of January.
This sharp decline boosted scalability and security, driving the ecosystem forward. Lower fees solidified a healthier ecosystem, but the real challenge remains sustaining explosive long-term growth. This mirrors the powerful expansions of 2017 and 2021 when fees also dropped to these levels.
Liquidity thickens below $2,900
Ethereum’s liquidity clusters around $2,900 and $2,850 offered crucial downside support. Large buy orders in these zones triggered accumulation from whales, creating solid backing.
But what happens if the price drops below these levels? Will market makers hunt that liquidity, causing a cascading effect and leading to a deeper pullback?
At the time of writing, Ethereum [ETH] was trading at $2,908. Reclaiming and breaking the $3,000 level became the new benchmark. A successful reclaim and clearing of the downtrend could have pushed Ethereum toward the $3,200-$3,400 resistance zone.
However, momentum indicators like the MACD showed signs of weakness, and the RSI was in the 40s, indicating a lack of strong buying momentum. Ethereum’s ability to break the $3,000 resistance would have defined its next move.
Final Thoughts
- Ethereum saw $117 million in net inflows into U.S. spot ETFs. While Fidelity absorbed most inflows, BlackRock posted net outflows, signaling selective positioning rather than uniform institutional accumulation.
- Liquidity clustered near $2,900 and $2,850 offered support.
