Recently, Ethereum's performance has been somewhat sluggish. It repeatedly faced setbacks when attempting to surge past the $3,300 mark, with sellers stepping in heavily after each high was formed. Many short-term traders took profits quickly and cashed out, pushing the price back to the support level around $3,120. This phenomenon became even more evident after January 6th—at that time, the daily trading volume soared to $23.6 billion, but soon it waned.

From a capital perspective, the situation is even less optimistic. In the first week of 2026, US cryptocurrency ETFs experienced net outflows, with nearly $750 million withdrawn from Bitcoin and Ethereum-related products. This indicates that both institutional investors and retail traders are now cautious—some are considering switching to different sectors, while others are simply waiting and watching. This withdrawal force offset the bullish enthusiasm from derivatives longs, and negative funding rates have also severely limited upward potential.

On the macro level, the outlook is equally unfavorable. Uncertainty in the global economy is increasing, the Federal Reserve's rate cuts are not coming anytime soon, and inflation data remains volatile, all exerting heavy pressure on risk assets. As a smart contract platform, Ethereum fundamentally still follows the market trend dominated by Bitcoin. Once Bitcoin adjusts, ETH tends to follow suit, and combined with selling pressure in the US market, even the supply contraction on-chain has been offset by these factors.

What do you think about Ethereum's future?