Ethereum slipped below the key $3,000 psychological level on Tuesday as selling pressure intensified across both spot and derivatives markets, raising concerns that the recent pullback could extend further in the near term.
At press time, ETH was trading around $2,978, down 4.6% over the past 24 hours. While the token remains modestly higher on a monthly basis, it has fallen roughly 10% over the last seven days. Trading activity surged during the decline, with 24-hour spot volume jumping 58% to $34.3 billion a sign of heightened activity as prices moved lower.
Derivatives data points to position unwinding rather than fresh risk-taking. According to CoinGlass, Ethereum derivatives volume climbed 65% to $74.9 billion, while open interest slipped 2% to $39.37 billion. This combination typically suggests traders are closing existing positions amid uncertainty instead of opening new leveraged bets.
ETF outflows pressure price as exchange supply keeps shrinking
Spot Ethereum exchange-traded funds also saw a sharp reversal in flows. Data from SoSoValue shows U.S. spot ETH ETFs recorded net outflows of $229.95 million on Jan. 20, snapping a five-day inflow streak.
BlackRock’s ETHA led the outflows with $92 million, followed by Fidelity’s FETH ($51 million) and Bitwise’s ETHW ($31 million). Grayscale’s ETHE and Mini ETH products combined saw close to $50 million exit as well.
Although monthly net inflows remain positive at $359 million, large single-day outflows often weigh on price in the short term by reducing spot demand and weakening near-term sentiment.
That said, on-chain data suggests deeper selling pressure may be limited. According to a Dec. 21 analysis from CryptoQuant contributor Arab Chain, Ethereum exchange reserves have dropped to around 16.2 million ETH — the lowest level since 2016. Declining exchange balances typically signal reduced immediate sell-side supply, as more tokens move into long-term storage.
The trend is particularly visible on Binance, where ETH balances have fallen from roughly 4.17 million at the start of 2026 to around 4.0 million. This behavior is commonly associated with longer-term holding strategies that can help stabilize prices over time.
Ethereum price technical analysis
From a technical standpoint, Ethereum’s structure weakened after it slipped below $3,000, a level that had acted as short-term support during recent consolidation. The prior rally topped out near $3,400 after price was rejected close to the upper Bollinger Band, before drifting lower toward the middle of the range.
ETH has now fallen below the 20-day moving average, a level that previously capped pullbacks, indicating that short-term bullish control is fading. Volatility is also starting to expand after weeks of tight trading, suggesting the market may be entering a more active phase.
Momentum indicators support a cautious outlook. The relative strength index has slipped into the low 40s, pointing to weakening momentum without yet reaching oversold conditions. If selling continues, the $2,900–$2,950 zone stands out as an important support area, aligning with prior demand and the lower Bollinger Band.
On the upside, reclaiming $3,000 and pushing back above short-term moving averages would help restore technical strength and could open the door for a move toward $3,200. Conversely, a decisive break below $2,900 could expose ETH to further downside toward the $2,750–$2,800 range before stronger buying interest emerges.
