Institutional interest in Ethereum briefly returned as network costs plunged — but whether that marks a sustainable shift remains unclear. On Jan. 26, U.S. spot Ethereum ETFs drew $117 million in net inflows, led by Fidelity, which recorded a $137 million intake and ended a four-day outflow streak, according to posts on X. BlackRock, by contrast, saw net outflows that day, underscoring that buying was selective rather than a broad, institution-wide bid. The ETF flow reversal followed several sessions of sustained withdrawals, leaving market participants debating whether institutions were rebuilding long-term exposure or simply reallocating short-term positions. Meanwhile, on Jan. 27 Glassnode reported that Ethereum’s total transaction fees dropped to their lowest level since May 2017. Lower fees improve the network’s scalability and user experience, and historically such fee compressions have accompanied major bullish runs (notably in 2017 and 2021). However, cheaper transactions alone aren’t a guarantee of immediate price gains — they’re one piece of the ecosystem health puzzle. On-chain liquidity concentrated around $2,900 and $2,850 acted as key downside support, with large buy orders in those bands triggering whale accumulation, according to CoinGlass data. That support leaves an important question: if ETH falls beneath those clusters, would market makers target that liquidity and trigger a cascade of stop-losses and a deeper pullback? At the time of writing ETH was trading near $2,908. Clearing and holding above the $3,000 mark has emerged as the near-term benchmark — a successful reclaim and break of the downtrend could open resistance toward $3,200–$3,400 (TradingView). Technical indicators painted a mixed picture: MACD showed signs of weakness and the RSI sat in the 40s, suggesting limited buying momentum for now. Ultimately, Ethereum’s ability to decisively move above $3,000 will likely shape its next directional leg. Disclaimer: This article is for informational purposes only and should not be considered investment advice. Cryptocurrency trading carries high risk; readers should do their own research before making decisions. © 2026 AMBCrypto Read more AI-generated news on: undefined/news

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