Ethereum rebounded on the 26th of January, posting $117 million in net inflows into U.S. spot Ethereum ETFs. Fidelity dominated the session, recording $137 million in inflows and snapping a four-day outflow streak.

Source: X

By contrast, BlackRock registered net outflows on the day. That divergence highlighted selective institutional positioning rather than broad-based accumulation.

The reversal in ETF flows followed multiple sessions of sustained outflows. That shift left traders focused on whether institutions were rebuilding exposure or executing short-term reallocations.

Even so, inflows alone did not guarantee immediate price expansion.

Ethereum network fees hit multi-year lows

Glassnode data showed Ethereum’s Total Transaction Fees fell to their lowest level since May 2017 on the 27th of January.

Source: Glassnode

This sharp decline boosted scalability and security, driving the ecosystem forward. Lower fees solidified a healthier ecosystem, but the real challenge remains sustaining explosive long-term growth. This mirrors the powerful expansions of 2017 and 2021 when fees also dropped to these levels.

Liquidity thickens below $2,900

Ethereum’s liquidity clusters around $2,900 and $2,850 offered crucial downside support. Large buy orders in these zones triggered accumulation from whales, creating solid backing.

Source: CoinGlass

But what happens if the price drops below these levels? Will market makers hunt that liquidity, causing a cascading effect and leading to a deeper pullback?

At the time of writing, Ethereum [ETH] was trading at $2,908. Reclaiming and breaking the $3,000 level became the new benchmark. A successful reclaim and clearing of the downtrend could have pushed Ethereum toward the $3,200-$3,400 resistance zone.

Source: TradingView

However, momentum indicators like the MACD showed signs of weakness, and the RSI was in the 40s, indicating a lack of strong buying momentum. Ethereum’s ability to break the $3,000 resistance would have defined its next move.

Final Thoughts

• Ethereum saw $117 million in net inflows into U.S. spot ETFs. While Fidelity absorbed most inflows, BlackRock posted net outflows, signaling selective positioning rather than uniform institutional accumulation.
• Liquidity clustered near $2,900 and $2,850 offered support.