Ethereum (ETH) experienced the highest net inflows to exchanges in nearly three weeks, exceeding $46 million on January 8th. This surge in inflows, coupled with weakened demand and outflows from spot ETFs, contributed to a bearish trend that saw ETH drop from $3,700 to $3,324 in the past two days.
More than $46 million worth of ETH was moved to exchanges on January 8th, marking the highest net inflows in almost three weeks. Ethereum has yet to record any significant gains in 2025. In the last two days, the largest altcoin has dropped from around $3,700 to trade at $3,324 at press time. One of the factors behind Ethereum ’s bearish trend is weakened demand. For instance, on January 8th, the outflows from spot Ethereum exchange-traded funds (ETFs) reached $159 million.
Data from CryptoQuant shows that on January 8th, the net inflows for ETH to spot exchanges hit 14,143, valued at more than $46 million. This was the highest level of positive net flows in nearly three weeks. These inflows led to a surge in exchange reserves to 8.06 million ETH, which is also at its highest level in a week. When more ETH tokens are transferred to exchanges, it shows an intent by traders to sell. This could result in bearish sentiment, and once these tokens are dumped into the market, it leads to a negative price momentum. Ethereum’s weekly chart shows that a crucial support level lies at $2,870. Going by past trends, a breach below this support has coincided with significant price declines. If selling activity continues amid a lack of demand to absorb these sold coins, ETH could drop further towards this support level. However, selling activity has yet to overpower buying pressure. This was seen in the Relative Strength Index (RSI) indicator that stood at 52 at press time, which was a near-neutral level. If neither buyers nor sellers have the upper hand, ETH could enter into a consolidation range. However, traders should watch out for the bearish pressure depicted by the red Awesome Oscillator (AO) histogram bars. Ethereum’s estimated leverage ratio, which measures the risk appetite among traders, has surged to 0.605, setting a new record high. This rising ratio indicates that derivative traders are keen on opening new positions. It could also indicate that these traders are looking to capitalize on the short-term price movements as speculative interest grows. Rising leverage could also stir volatile price movements if there are forced liquidations due to unexpected price movements. However, despite the rising speculative interest, the demand for long positions has decreased as seen in funding rates. This indicates that the bullish sentiment has cooled
ETHEREUM CRYPTOCURRENCY EXCHANGE INFLOW BEARISH TREND DEMAND
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