Ethereum price is under pressure as large ETF launches $560 million funds

probably_nothing_anon · 2026-01-20T14:12:45+00:00

The Ethereum market faces significant downward pressure amid large outflows from crypto investment funds, totaling around $560 million in a day. Technical analysis reveals Ethereum struggling at a resistance level of $3,300. Major fund withdrawals, particularly from BlackRock and Grayscale, contribute to market weakness. Analysts suggest potential declines to $2,600–$2,250 if the bearish trend continues, creating challenges for bullish traders.

probably_nothing_anon

2026-01-20 14:12:45

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The Ethereum market continues to experience strong downward pressure amid thousands of funds ranging from crypto investment funds. In just one day, the industry has caused an estimated $560 million outflows in Ethereum and Bitcoin related products, leading to widespread shifts in overall market sentiment.

Technical Analysis: Ethereum Holds in a Narrow Range

Ethereum’s chart shows sideways movement over the past day, with multiple attempts to rise but consistently facing resistance. The $3,300 level has become a strong barrier, and each price rally encounters heavy selling within this range. Similarly, Bitcoin remains struggling within the $90,000–$95,000 range, indicating broader market weakness.

Technical indicators show exhaustion on the upside, where buyers have failed to sustain momentum at higher prices. Currently, Ethereum is trading within the $3,090 range, with a 4.12% downward movement in the past 24 hours.

Major Asset Managers Withdraw Crypto Funds

Data from leading fund managers shows consistent outflows. BlackRock’s iShares Ethereum Trust (ETHA) leads the withdrawals, totaling $107.65 million. This is followed by Grayscale Ethereum Trust (ETHE) with $31.72 million outflow, while Grayscale Ethereum Mini Trust (ETH) has an additional $12.90 million in funds exiting.

Fidelity’s FETH fund also saw a $4.63 million withdrawal. Overall, digital asset funds recorded $159.17 million in Ethereum-related outflows and $398.95 million in Bitcoin-related outflows, representing a significant single-day redemption activity.

Downside Risk and Lower Support Levels

The market indicates deeper downside potential if downward pressure continues. Should prices break lower, market observers see the possibility that Ethereum could decline toward the $2,600 to $2,250 range, where buying interest from contrarian investors is expected to re-emerge.

Currently, support levels remain above recent monthly lows, but momentum is clearly favoring the downside. Maintaining higher ranges is necessary to protect positions for long-term believers.

The combination of large institutional redemptions and technical rejection at resistance creates a challenging environment for bullish traders in the coming week.

ETH-6,23%

BTC-2,87%

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