Ethereum (ETH) Price Rebounds After Weekend Dump, Yet Triangle Break Turns Bearish

TLDR

• ETH bounces 3% after weekend dump, yet triangle break keeps downside risk high.

• $611M ETF outflows sap support as ETH trades below key moving averages today.

• Bears defend $2,920-$2,960, and the chart points to $2,380 if weakness holds.

Ethereum Price rebounded 3% on Jan. 26 after a sharp weekend drop, yet pressure remained heavy. ETH Price faced weaker spot demand as U.S.-listed ETFs posted $611.17 million weekly outflows. ETH held below key chart levels, and technicians kept a $2,380 downside target in view.

ETF Outflows Weaken Spot Support

ETH Price bounced during Asian hours, but ETF flows pointed the other way. U.S.-listed spot Ethereum ETFs recorded $611.17 million in net outflows over the past week. As a result, the rebound looked driven by short-term dip buying rather than steady accumulation.

ETF outflows remove a consistent source of spot demand during rebounds and trend shifts. Therefore, sellers found less friction when price slipped through nearby support zones. At the same time, rotation into other large-cap tokens reduced marginal bids for Ether.

                                                  Ethereum(ETH) Price

Ethereum Price still tracked the broader crypto market’s move higher on the day. The flow data matched a softer tone in risk assets across traditional markets. The recovery lacked the kind of persistent spot support that often sustains multi-day rallies.

Macro Signals Tighten Risk Appetite

Ethereum Price stabilized as traders assessed a stronger risk-off tone in global markets. U.S. stock futures traded lower, while gold pushed above $5,000 at the week’s start. In addition, renewed concern over a potential U.S. government shutdown lifted short-term uncertainty.

Currency markets added another layer, because the U.S. dollar logged its steepest weekly drop since May. That move created tactical dip entries in crypto, and it also reshaped hedging demand. Still, the same FX backdrop kept attention on Japan and the yen.

Japan’s 10-year government bond yields climbed toward multi-decade highs as fiscal worries persisted. Japan’s debt load sits above 230% of GDP, and yields rose with added risk premium demands. A more hawkish Bank of Japan tone supported expectations for higher rates and tighter global liquidity.

Triangle Breakdown Sets $2,380 Target

ETH Price broke below an ascending triangle pattern after repeated failures near the low-$3,300 resistance band. The move also pushed price under the rising support trendline that had guided the prior advance. As momentum cooled, the breakdown shifted attention from recovery to damage control.

ETH Price also traded below key moving averages that often define short-term trend direction. The 20-day moving average stood near $3,049, while the 50-day sat near $3,104. Meanwhile, the RSI fell below 40, and that reading aligned with seller control.

Ethereum Price slid below $2,880 and $2,865, then entered a bearish zone under $2,840. Price tested $2,800 and then consolidated under $2,900 and the 100-hour simple moving average. Resistance formed near $2,920 and $2,960, while measured-move math kept $2,380 as the next target.