Ethereum, which previously enjoyed significant momentum, is now approaching the crucial support level of $2,500-$2,600. Bolstered by prior ETF and DAT accumulation, this area has emerged as crucial for the asset’s future. Following a drop beneath $2,800, Ethereum is exhibiting signs of vulnerability, as institutional outflows continue to increase. If this support level fails, deeper losses could ensue, making the next move pivotal for its future. At this time, Ethereum was trading at $2,692 and exhibiting a classic ‘head and shoulders’ pattern on the weekly timeframe. The left shoulder took shape in mid-2024, the head emerged in March 2025, and the right shoulder is approaching completion, situated between $2,162 and $2,300. This pattern indicates a possible bearish trend, highlighting the need for caution.
Simultaneously, the monthly and three-month charts persist in displaying bullish signals. The pivotal inquiry revolves around Ethereum’s potential to escape this configuration or if the bears have firmly established their dominance. The outcome is still up in the air, yet the risks involved are significant. On January 30, 2026, Ethereum ETFs experienced a remarkable $113 million in outflows, intensifying the challenges faced by this already beleaguered asset. According to data, this brings the total weekly outflows to $58.4 million. Institutional investors have been pulling back, contributing to the uncertainty surrounding Ethereum’s future.
This exodus from Ethereum ETFs may signal further declines ahead. However, will institutional inflows turn the tide, or does this indicate more significant losses ahead? CryptoQuant reports that Ethereum’s Spot Taker Buy Dominant volume experienced a significant surge as buyers moved in aggressively after ETH fell below $3k and dipped below $2,800. This buying pressure has indeed surged past the last recorded Taker Buy Dominant in June 2025, indicating that Ethereum may still have more to offer. Ethereum is at a pivotal moment as the support level between $2,500 and $2,600 is being tested. The looming threat of a U.S. government shutdown, coupled with persistent institutional outflows, poses significant challenges for ETH in maintaining its position.
Nonetheless, Taker Buy Dominance indicates a strong resilience. If buyers hold their ground, a rebound could be on the horizon; however, in the absence of robust inflows, Ethereum faces the threat of additional downturns. Ethereum’s support level between $2,500 and $2,600 is crucial for its short-term outlook. While the increasing Taker Buy Volume presents a glimmer of optimism, persistent institutional outflows may lead to additional downturns.