TLDR
- Ethereum price dropped below $3,000 after failing to hold support at $3,200, testing lows near $2,910
- ETH declined over 5% in the recent downward move and now trades below its 100-hour moving average
- Resistance sits at $3,020 with a bearish trend line forming on hourly charts
- The Bitwise Ethereum Strategy ETF saw $949,375 in outflows on January 16, representing 11.1% of assets
- Price could face further drops toward $2,800 or $2,650 if support at $2,880 fails to hold
Ethereum price fell below $3,000 in a sharp decline that started from the $3,200 level. The second-largest cryptocurrency by market cap dropped over 5% as selling pressure increased across the crypto market.
ETH tested a low of $2,910 before consolidating. The price now trades below its 100-hour simple moving average. A bearish trend line has formed on the hourly chart with resistance at $3,020.
The recent downward move saw Ethereum fall from a swing high of $3,367 to the $2,910 swing low. The decline pushed the token below several key support levels including $3,150 and $3,120.
Current price action shows ETH consolidating below the 23.6% Fibonacci retracement level. Traders are watching the $2,880 zone as a critical support area.
You'll all be bullish again by next week. pic.twitter.com/IzYhhSSSbR
— K A L E O (@CryptoKaleo) January 21, 2026
If bulls can defend the $2,880 level, Ethereum could attempt a recovery. Immediate resistance sits at $3,020. Breaking above this level would open the door to $3,080 and then $3,120.
A move above $3,120 could push the price toward $3,150. This level aligns with the 50% Fibonacci retracement of the recent decline. Further gains could take ETH to $3,220 or even $3,300.
ETF Outflows Signal Weakening Sentiment
The Bitwise Ethereum Strategy ETF recorded substantial outflows on January 16. Investors pulled approximately $949,375 from the fund in a single day.
Crypto ETF Flows – Tuesday Jan 20th
🔴 Bitcoin $BTC spot ETFs recorded $483M in net outflows
🔴 Ethereum $ETH spot ETFs saw $230M in net outflows
🔴 XRP $XRP spot ETFs posted $53.32M in net outflows
🟢 Solana $SOL spot ETFs saw $3.08M in net inflows📊 Data powered by SoSoValue pic.twitter.com/XGwzuXirRH
— Trader Edge (@Pro_Trader_Edge) January 21, 2026
This redemption represents 11.1% of the fund’s assets under management. The ETF now holds about $8.54 million in total assets.
The sharp percentage drawdown suggests investors are pulling back from crypto exposure. The outflows may reflect concerns about recent price weakness and changing market conditions.
Bitcoin has fallen roughly 16.24% over the past three months. The flagship cryptocurrency currently trades around $90,933. Weakness in Bitcoin often affects the entire digital asset market.
Downside Risk Remains
If Ethereum fails to clear the $3,020 resistance, further declines are possible. Initial support on the downside sits near $2,920.
The first major support zone is at $2,880. A break below this level could push the price toward $2,800.
Continued selling pressure could take Ethereum down to $2,750. The main support level to watch sits at $2,650.
The current technical setup shows ETH trading below key moving averages. One-day technical signals are flashing sell indicators as momentum remains weak.
Traders are monitoring whether major tokens can stabilize in the coming weeks. The ability to hold current support levels will determine if this is a temporary pullback or the start of a deeper correction.
