ETHUSD Loss Extends over Institutional Capital Flight
Extending its weekly loss, Ethereum (ETHUSD) dropped by 1.07% over the last 24 hours to $2,926, according to data from crypto exchanges, underperforming the broader crypto market’s 1.27% decline.
ETHUSD extends a 7-day loss of 11.8%, indicating sustained selling pressure, spurred by institutional investors’ capital rotation from cryptocurrencies.
At the press time, Ethereum trading volume has spiraled downward by 55% on the day to $8.66 billion, trading data from CoinMarketCap.com, hovering at $2,926 on Sunday.
Institutional selloffs reduce interest in the Ethereum dragged price lower ahead of the Federal Reserve rate decision amidst regulatory inaction as per the CLARITY Act.
Reflecting downbeat sentiment, U.S. spot Ethereum ETFs recorded a net outflow of $611 million for the week ending January 25, 2026, with the largest single-day withdrawals occurring on Tuesday, worth $230 million, and on Wednesday, totaling $298 million.
BlackRock’s iShares Ethereum Trust (ETHA) alone saw $432 million exit. These outflows represent direct selling pressure, as ETF issuers likely sell underlying ETH to meet redemptions.
The reversal from prior weeks’ inflows suggests a shift in institutional sentiment, possibly due to macroeconomic uncertainty or profit-taking after ETH’s 30% decline over three months. Reduced ETF demand removes a key support pillar for price.
Crypto analysts said a reversal to net inflows in daily ETF data would signal renewed institutional confidence. ETH is trading below its 7-day average of $3,033 and 30-day average of $3,103, with the Relative Strength Index at 39.46 – indicating bearish momentum without being oversold.
The price was rejected at the $3,000 resistance level, a key psychological barrier. Analysts said the failure to reclaim $3,000 suggests a lack of bullish conviction.
With the MACD histogram deeply negative at -39.9, selling momentum is accelerating.
Concurrently, perpetual futures funding rates have turned negative on some exchanges, meaning short-sellers are paying longs to hold positions – a sign of defensive positioning and bearish leverage.
Ethereum’s 24-hour decline is driven by a combination of institutional capital flight via ETFs and a technical breakdown below key levels, all within a risk-averse broader market.
For holders, this indicates a period of consolidation where price is searching for a new equilibrium between persistent outflows and potential long-term accumulation by whales. XRP Jumps as Ripple Sees Additional Regulatory Win
