Coinbase Observes Ethereum ETF Outflows as ETH Tests Critical Support Levels
The cryptocurrency market is facing significant headwinds as Ethereum (ETH) struggles to maintain key support levels, with recent data highlighting substantial outflows from related investment products. On January 22, 2026, the 21Shares Ethereum ETF (TETH) experienced a dramatic single-day withdrawal of $10.56 million. This outflow represents a staggering 39.3% of the fund's total assets under management, marking one of the most severe redemptions relative to fund size in recent memory for a cryptocurrency ETF. This event coincides with a deepening price correction for Ethereum itself. The asset has breached the crucial $3,000 psychological support level and is currently testing waters near $2,700, with its price hovering around $2,956 at the time of reporting. This represents a significant 24.6% decline over the current quarter, underscoring the bearish sentiment prevailing in the market. Technical analysis charts reveal a concerning picture, suggesting the potential for further downside if the $2,700 support fails to hold. For platforms like Coinbase, a major hub for Ethereum trading and custody, these developments are critical. Large ETF outflows often reflect declining institutional or high-net-worth investor confidence, which can lead to reduced trading volumes and increased selling pressure on the underlying asset across all exchanges, including Coinbase. The convergence of a sharp price decline and massive ETF capital flight signals a period of heightened volatility and risk assessment for market participants. Traders and investors on Coinbase and similar platforms are likely closely monitoring these technical levels and fund flow data to gauge whether this is a short-term correction or the beginning of a more sustained downtrend for the second-largest cryptocurrency by market capitalization.
Ethereum ETF Bleeds $10.56M Amid Market Downturn as ETH Tests $2,700 Support
Ethereum's price struggles deepen as the $3,000 support level collapses, with the cryptocurrency now hovering near $2,956—a 24.6% quarterly decline. The 21Shares ethereum ETF (TETH) saw a staggering $10.56 million outflow on January 22, representing 39.3% of its total assets under management. This marks one of the most severe single-day withdrawals relative to fund size in recent history.
Technical charts reveal a breakdown from the rising channel pattern, with ETH forming lower highs and lower lows. The $2,700 demand zone now becomes critical. Meanwhile, Coinbase Premium Index data shows persistent negative readings, signaling weakening institutional appetite from U.S. investors.
The broader crypto ETF market mirrors this distress. Bitcoin spot ETFs recorded $1.3 billion in net outflows—the second-largest weekly redemption on record—while Ethereum spot ETFs bled $611 million. Solana spot ETFs emerged as the lone bright spot with $9.5 million in inflows.
Institutional Investors See Bitcoin as Undervalued Amid Market Correction
Seventy percent of institutional investors surveyed by Coinbase believe bitcoin is undervalued at its current price range of $85,000 to $95,000. This conviction persists despite Bitcoin's 30% drop from its October 2025 all-time high of $126,080—a correction that coincided with gold breaching $5,000 and silver doubling in value.
Eighty percent of institutions plan to maintain or increase crypto exposure if prices decline another 10%, according to the Q1 2026 "Charting Crypto" report. The survey of 75 institutional and 73 independent investors conducted December 2025-January 2026 revealed 71% of professional money managers view BTC as undervalued at $87,600, compared to 60% of retail participants.
Notably, over 60% of institutions have held or expanded crypto positions since October, suggesting they perceive the dip as a buying opportunity rather than a trend reversal.
