- Over $110M in ETH has moved to exchanges, increasing short-term selling risk.
- The Coinbase Premium Index shows weaker US-based demand.
- Strong staking queues highlight continued long-term confidence in Ethereum.
Ethereum is under renewed pressure in January 2026 as large holders and institutional players move significant amounts of ETH to centralized exchanges. On-chain data shows more than $110 million worth of Ethereum recently transferred, a development that has raised short-term concerns about potential selling. Still, broader market signals suggest the picture is more nuanced than simple bearishness.
Whale and Institutional Transfers Raise Short-Term Risk
Blockchain trackers have flagged a surge in high-value Ethereum transfers to major exchanges, often viewed as a precursor to selling. Some of these wallets have held ETH for years, while others belong to corporate treasuries and venture-linked entities unwinding or reallocating positions.
Such moves typically increase market supply and can weigh on price in the near term. However, exchange inflows do not always result in immediate spot sales. Funds can be moved for liquidity management, collateral use, hedging, or private transactions. As a result, while the risk of selling has risen, liquidation is not guaranteed.
Weak US Demand Reflected in Coinbase Premium
Market-based indicators are reinforcing the cautious tone. The Coinbase Premium Index, which compares ETH prices on US-based Coinbase versus offshore exchanges like Binance, has slipped into negative territory. This suggests softer demand from US institutional investors, historically an important source of upside momentum during bullish phases.
A sustained negative premium often points to reduced buying pressure rather than outright panic selling. For now, it signals hesitation among US market participants rather than a full loss of confidence.
Staking Activity and Technical Structure Show Resilience
Despite the selling signals, Ethereum’s staking data tells a different story. Around 2.7 million ETH is currently queued to enter staking, creating a wait time of roughly 47 days. In contrast, the exit queue remains relatively small. This imbalance suggests long-term holders continue to favor yield and network participation over short-term liquidity.
From a technical perspective, some analysts argue Ethereum may be in a re-accumulation phase rather than a distribution cycle. If support levels hold, a gradual recovery toward higher price zones remains possible.
Also Read: Ethereum Activity Hits Records—But Are Address Poisoning Attacks to Blame?
Ethereum is navigating a mixed environment. Whale transfers and weak US demand have added downside pressure, but strong staking participation and constructive technical signals continue to underpin the network’s long-term outlook. Whether ETH breaks lower or stabilizes will likely depend on how these competing forces resolve in the weeks ahead.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of CoinBrief.io. Before making any investment decisions, you should always conduct your own research. CoinBrief.io is not responsible for any financial losses.
