<div id="readability-page-1" class="page">Large institutions continue removing Ethereum [ETH] from liquid circulation, and the pace shows no sign of slowing.Bitmine recently staked 86,848 ETH worth $277.5 million, pushing its total staked holdings to 1.77 million ETH valued at around $5.66 billion.Meanwhile, ETFs accumulated 158,545 ETH, absorbing roughly $520 million since late December. This steady absorption reduces available market supply day after day.However, the price refuses to react immediately. Long-term participants clearly prioritize yield and custody over short-term volatility. At the same time, speculative traders hesitate.As a result, a widening gap forms between structural accumulation and visible price response. Eventually, tightening supply should matter. For now, patience dominates.<h2>Why $3,390 caps every upside attempt</h2>Ethereum remains locked inside a clearly defined range, and sellers continue asserting control near $3,390. Each rally into this zone attracts fresh selling pressure.Buyers manage to defend the lower region near $3,000, yet they struggle to build momentum beyond that point. Consequently, price oscillates rather than trends. This repeated rejection signals caution rather than weakness.Sellers defend key levels but avoid aggressive follow-through. Meanwhile, buyers step in selectively instead of chasing strength. Therefore, price compresses further. Consolidation dominates daily structure.A decisive break above resistance remains necessary to change sentiment. Until then, the range dictates behavior.Momentum indicators reinforce the consolidation narrative. At the time of writing, the RSI rolled over from the low-50s and drifted toward the mid-40s. This shift reflects fading buyer strength after each rebound.Importantly, RSI does not show bullish divergence. Therefore, momentum offers no confirmation for an upside breakout.<div id="attachment_563305"><img src="https://imageproxy.pbkrs.com/https://ambcrypto.com/wp-content/uploads/2026/01/ETHUSD_2026-01-20_10-04-55.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="2114" height="1033" original-src="https://imageproxy.pbkrs.com/https://ambcrypto.com/wp-content/uploads/2026/01/ETHUSD_2026-01-20_10-04-55.png"/>Source: TradingView</div><h2>ETH keeps leaving exchanges</h2>Spot flow analytics continues sending a constructive signal beneath the surface. Ethereum records consistent exchange outflows, with the latest daily netflow near -$72.6 million, as of writing.Traders and long-term holders still prefer moving ETH into self-custody. This behavior steadily reduces the readily available supply.However, price does not respond immediately. That disconnect frustrates short-term participants.Still, persistent outflows often precede supply-driven moves. Meanwhile, sellers fail to force sustained breakdowns.Therefore, price stabilizes despite weak momentum. Exchange behavior reflects conviction among holders rather than fear. Over time, this trend should tighten conditions further.<div id="attachment_563307"><img src="https://imageproxy.pbkrs.com/https://ambcrypto.com/wp-content/uploads/2026/01/Screenshot-2026-01-20-100822.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="2206" height="581" original-src="https://imageproxy.pbkrs.com/https://ambcrypto.com/wp-content/uploads/2026/01/Screenshot-2026-01-20-100822.png"/>Source: CoinGlass</div><h2>Funding stays positive but…</h2>Derivatives markets continue signaling hesitation rather than confidence. Funding Rates remained positive near 0.0042, at press time, with the metric up roughly +1,900.87% from previously suppressed levels.This rebound shows leverage has returned on a relative basis. However, the absolute funding level remains modest. Longs still pay shorts, yet they do so without urgency.As a result, leverage participation stays restrained. Traders appear unwilling to chase upside aggressively.At the same time, funding refuses to flip negative, indicating bears lack conviction as well.Therefore, leverage fails to amplify price action. Without a sustained expansion in funding, Ethereum struggles to generate a durable breakout and remains trapped inside consolidation.<div id="attachment_563303"><img src="https://imageproxy.pbkrs.com/https://ambcrypto.com/wp-content/uploads/2026/01/Ethereum-Funding-Rates-All-Exchanges-4-scaled.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="2560" height="1440" original-src="https://imageproxy.pbkrs.com/https://ambcrypto.com/wp-content/uploads/2026/01/Ethereum-Funding-Rates-All-Exchanges-4-scaled.png"/>Source: CryptoQuant</div>Ethereum remains caught between strong structural accumulation and weak short‑term conviction.Institutions continue to lock supply, but momentum and leverage have yet to confirm an upside move. With funding muted and RSI subdued, the price is likely to consolidate.A decisive break above the $3,390 resistance, backed by stronger momentum, would indicate that tightening supply is finally pushing the price higher.<hr/><h2>Final Thoughts</h2><ul><li>Structural accumulation favors patience, but price needs conviction before rewarding long-term holders.</li><li>Ethereum’s next move depends on participation returning, not just supply tightening alone.</li></ul></div>

Ethereum's supply is shrinking as large institutions continue to remove ETH from circulation, with significant staking and ETF accumulation. However, the price remains stuck below $3,390 due to selling pressure and cautious buying. Despite consistent exchange outflows indicating strong holder conviction, momentum indicators show fading buyer strength. Funding rates are positive but lack urgency, leading to restrained leverage participation. A decisive break above $3,390 is needed for a price increase, but currently, Ethereum is consolidating as structural accumulation continues without short-term conviction.

- Large institutions are removing Ethereum from circulation, evidenced by significant staked holdings and ETF accumulation, which decreases market supply.  
- Despite these developments, Ethereum's price remains stagnant, holding between $3,000 and $3,390 due to a lack of momentum and cautious trading behavior.  
- A decisive break above the $3,390 resistance is essential for a price increase, yet structural accumulation alone isn't enough without increased market participation.

Amb Crypto

iShares Bitcoin Trust ETF

Direxion Daily Crypto Industry Bear1XETF

Fidelity Wise Origin Bitcoin Fund - ETF

Invesco Galaxy Bitcoin ETF

Franklin Ethereum ETF

Bakkt

Bitwise Ethereum ETF

Proshares Ether Strategy ETF

Mara

Bitwise Bitcoin ETF

VanEck Ethereum ETF

Riot Platforms

Proshares Ultra Ether ETF

Amplify Transform Data Sharing ETF

Galaxy Digital

YieldMax COIN Option Income Strategy ETF

Hut 8 Mining

VanEck Bitcoin ETF

BTCS

GraniteShares 2x Short COIN Daily ETF

Grayscale Bitcoin Trust BTC - ETF

Invesco Galaxy Ethereum ETF

BitMine Immersion Tech

IShares Ethereum Trust ETF

Coinbase

Bit Digital

Valkyrie Bitcoin and Ether Strategy ETF

Grayscale Ethereum Mini Staking ETF

2x Ether Strategy ETF

Proshares Ultrashort Ether ETF

Franklin Bitcoin ETF

Direxion Daily Crypto Industry Bull2XETF

Grayscale Ethereum Covered Call ETF

Core Scientific, Inc.

CoinShares Bitcoin ETF

YieldMax Short COIN Option Income Strategy ETF

Bitfarms Canada

Leverage Shares 2X Long COIN Daily ETF

Fidelity Ethereum Fund

ProShares Bitcoin Strategy ETF

GraniteShares 2x Long COIN Daily ETF

ARK 21Shares Bitcoin ETF

Bitdeer Tech

Roundhill COIN WeeklyPay ETF

21Shares Ethereum ETF

Grayscale Ethereum Staking ETF

WisdomTree Bitcoin Fund

Ethereum supply shrinks: So why is ETH still stuck below $3,390?