Ethereum spot ETF experiences a huge weekly shake: net outflow exceeds $600 million, is a market turning point approaching?

According to SoSoValue data, during the trading week from January 19 to January 23 Eastern Time, Ethereum spot ETFs experienced a net outflow of up to $611 million.

Among them, the ETHA product under the global asset management giant BlackRock saw a net outflow of $432 million, becoming the “main battleground” for capital withdrawal. During the same period, Bitcoin spot ETFs also recorded the second-highest weekly net outflow in history, totaling $1.33 billion.

01 Capital Flight

This week, the cryptocurrency market was shrouded in a strong risk-avoidance sentiment. SoSoValue’s data clearly reveals the flow of institutional funds: mainstream cryptocurrency spot ETFs are generally under pressure.

Ethereum spot ETFs recorded a net outflow of $611 million this week, while Bitcoin spot ETFs experienced an even larger net outflow of $1.33 billion, marking the second-highest weekly outflow in the history of these products since their launch.

BlackRock’s ETHA is the focus of capital outflows, with net outflows from this single product accounting for over 70% of the total outflow from Ethereum spot ETFs. Meanwhile, Solana spot ETFs became a bright spot amid the gloom, achieving a net inflow of $9.5736 million.

02 Market Reaction

The fund flows of ETFs serve as a barometer of institutional sentiment, and their massive outflows immediately triggered chain reactions in the secondary market.

On January 26, according to market information, Ethereum’s price fell below $2,900, with a 24-hour decline of 2.1%; Bitcoin’s price also dropped below the $88,000 mark. Market panic is spreading. According to Coinglass data, in the past 12 hours, the total liquidation amount in the crypto market reached as high as $603 million.

In traditional financial markets, risk assets also performed poorly. U.S. stocks closed lower across the board this week, while traditional safe-haven assets like gold and silver surged against the trend, both hitting new all-time highs.

03 Multiple Causes of Outflows

The large-scale withdrawal of funds from crypto ETFs is not caused by a single factor but is the result of multiple pressures at macro and micro levels.

Foremost is the tense geopolitical situation. Recently, instability in the Middle East has significantly increased market bets that the U.S. may take military action. This uncertainty drives global investors to shift funds from high-risk digital assets like Bitcoin and Ethereum to traditional safe havens such as gold and silver.

Secondly, the market is waiting with bated breath for key earnings reports. This week, several major U.S. tech giants including Microsoft, Apple, Meta, and Tesla will release their earnings reports.

These companies account for over 25% of the S&P 500 index weight, and their performance will directly influence the sentiment of U.S. stocks and global risk assets. Some traders are choosing to exit early and wait to avoid uncertainty.

04 Divergence Between Whales and Retail Investors

Beneath the surface of the market-wide decline and retail panic selling, on-chain data reveals a completely different story: “Smart money” is quietly accumulating.

Data from crypto analytics platform Santiment shows that despite the price decline, “whale” addresses holding between 10 and 10,000 BTC have continued to accumulate over 36,322 BTC in the past 9 days. Meanwhile, retail addresses holding less than 0.01 BTC have been reducing their holdings.

Santiment’s analysis indicates that this pattern of “whales accumulating while retail investors sell” is often a technical divergence signaling the market is building a long-term bullish bottom. Historical data also provides reference; CoinDesk analysis suggests that after a significant ETF outflow in November 2025, Bitcoin’s price formed a local bottom around $80,000 before rebounding.

05 Is the Market Undervaluing Ethereum?

Amid widespread pessimism, some technical analysts have offered a different perspective. They believe that the current market sentiment toward Ethereum may be severely undervalued.

Analysts point out that since December 2025, Ethereum’s daily chart has been constructing a series of progressively higher lows, forming a converging triangle pattern. This pattern is often interpreted as a period of accumulation before a trend continuation, with the key being to hold the critical support levels.

The key support zone identified by analysts is between $2,860 and $2,780. As long as the price remains above this zone, there is “no technical reason to be bearish on Ethereum.” They believe that the real risk now is not being bullish but attempting to short near the lower boundary.

06 Current Situation and Gate User Strategies

In the face of market volatility, it is crucial for Gate users to maintain rational and strategic thinking.

First, focus on key price zones. For Ethereum, $2,860 to $2,780 is an important short-term technical support zone, and its success or failure will influence the medium-term structure. For Bitcoin, historical data shows that $84,099 is the average cost basis for ETF investors and has repeatedly served as a key support.

Second, utilize reliable on-chain data to assist decision-making. Monitoring whale holdings changes on platforms like Santiment can serve as a reference for judging the movement of “smart money” in the market.

The market is highly sensitive to macro events (geopolitics, earnings reports). Before major uncertainties are resolved, volatility may persist. It is recommended that ordinary users consider adopting a phased deployment strategy rather than making all-in bets, and always prioritize risk management.

Future Outlook

As of January 26, Ethereum’s price on Gate is temporarily reported at $2,890. The market’s fear and greed index remains in the “fear” zone, with many retail investors selling off their holdings.

Meanwhile, whale addresses holding thousands of Bitcoin are quietly accumulating at the fastest pace in recent months. The rhythm of history seems to echo again: when the streets are bloodied, and even some professionals feel fear, predators begin to move quietly.