According to data from SoSoValue, during the trading week from January 19 to January 23 (EST), spot Ethereum ETFs saw net outflows totaling $611 million.
Among them, BlackRock’s ETHA product recorded net outflows of $432 million, making it the primary driver of capital withdrawal. In the same period, spot Bitcoin ETFs also posted their second-highest weekly net outflow on record, with $1.33 billion leaving the funds.
01 Capital Flight
This week, the cryptocurrency market was gripped by a strong risk-off sentiment. SoSoValue’s data clearly reveals the direction of institutional capital: mainstream spot crypto ETFs faced broad pressure.
Spot Ethereum ETFs recorded $611 million in net outflows this week, while spot Bitcoin ETFs saw even larger outflows of $1.33 billion, marking the second-largest weekly outflow since the product’s launch.
BlackRock’s ETHA was at the center of these withdrawals, accounting for over 70% of the total net outflows from spot Ethereum ETFs. Meanwhile, the Solana spot ETF provided a rare bright spot, attracting $9.57 million in net inflows.
02 Market Reaction
ETF capital flows serve as a barometer of institutional sentiment, and these massive outflows quickly triggered a chain reaction in the secondary market.
On January 26, market data showed that the price of Ethereum fell below $2,900, down 2.1% over 24 hours. The price of Bitcoin also dropped below the $88,000 mark. Panic spread across the market. According to Coinglass, total liquidations in the crypto market reached $603 million over the past 12 hours.
Traditional financial markets also struggled, with U.S. stocks closing lower across the board this week. In contrast, traditional safe-haven assets like gold and silver surged, both reaching new all-time highs.
03 Multiple Drivers Behind the Outflows
The large-scale outflows from crypto ETFs this week were not caused by a single factor, but rather by a combination of macro and micro pressures.
First and foremost is the tense geopolitical climate. Recent instability in the Middle East has led markets to bet that the U.S. may take military action, significantly raising uncertainty. As a result, global investors have shifted capital out of high-risk digital assets like Bitcoin and Ethereum and into traditional safe havens such as gold and silver.
Second, the market is anxiously awaiting key earnings reports. This week, several U.S. tech giants—including Microsoft, Apple, Meta, and Tesla—are set to release their financial results.
These companies collectively account for over 25% of the S&P 500’s weight, and their performance will directly influence sentiment toward U.S. equities and global risk assets. Some traders have chosen to exit positions early to avoid uncertainty.
04 Divergence Between Whales and Retail Investors
Beneath the surface of broad market declines and panic-driven retail selling, on-chain data tells a different story: "smart money" is quietly accumulating.
According to crypto analytics platform Santiment, despite falling prices, whale addresses holding between 10 and 10,000 BTC have accumulated more than 36,322 BTC over the past nine days. At the same time, retail addresses holding less than 0.01 BTC have been reducing their holdings.
Santiment’s analysis notes that this pattern of "whale accumulation and retail selling" often signals a technical divergence that forms the foundation for a long-term bullish bottom. Historical data supports this view: CoinDesk analysis points out that after a major ETF outflow in November 2025, Bitcoin established a local bottom near $80,000 before rebounding.
05 Is Ethereum Undervalued?
Amid the prevailing pessimism, some technical analysts offer a different perspective. They argue that the market may be significantly underestimating Ethereum’s bullish potential.
Analysts note that since December 2025, Ethereum’s daily chart has formed a continuously converging triangle pattern, marked by a series of progressively higher lows. This pattern is typically seen as a consolidation phase before a trend continuation, with the key being to hold critical support levels.
Analysts have identified the crucial support zone between $2,860 and $2,780. As long as the price remains above this area, there is "no technical reason to be bearish on Ethereum." In their view, the real risk now isn’t being bullish, but rather attempting to short near the lower boundary.
06 Current Conditions and Gate User Strategies
In the face of heightened market volatility, it’s essential for Gate users to remain rational and strategic.
First, focus on key price zones. For Ethereum, the $2,860–$2,780 range is an important short-term technical support band, and its integrity will affect 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 level.
Second, leverage reliable on-chain data to inform your decisions. Monitoring whale holdings on platforms like Santiment can offer valuable insights into the movements of "smart money."
The market is highly sensitive to macro events, such as geopolitical developments and earnings reports. Volatility may persist until these uncertainties are resolved. Ordinary users are advised to consider a dollar-cost averaging strategy rather than making all-in bets, and to always prioritize risk management.
Outlook
As of January 26, Ethereum was trading at $2,890 on Gate. The market’s Fear & 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 months. History seems to be repeating itself: when there’s blood in the streets—and even some professionals are fearful—the predators begin to move silently.
