ETH rebounds after falling below 3150, what does the divergence operation between institutions and whales reveal

According to the latest news, ETH fell below 3150 USDT on the afternoon of January 5, 2026, with the current price at 3149.58 USDT. However, behind this short-term correction, there are more complex forces at play in the market. On the same morning, ETH also briefly broke through $3200, indicating that within just a few hours, the market experienced a tug-of-war.

The Truth Behind Short-Term Fluctuations

Specific manifestations of price fluctuations

Based on data, ETH’s recent price movements show clear short-term volatility:

This comparison is quite interesting. Although news reports show ETH just fell below 3150, the 24-hour, 7-day, and 30-day gains are all positive, indicating this is not a trend reversal but rather a short-term technical correction. ETH was still able to break above $3200 around 10 a.m., only to return to near 3150 in the afternoon. Such fluctuations are normal in the current market environment.

Market size and liquidity

ETH’s current market performance remains relatively stable:

• Market cap: $38.062 billion, ranking second in the crypto market
• Market share: 12.09%, relatively stable
• 24-hour trading volume: $1.691 billion, up 34.04% from the previous day

The increase in trading volume indicates rising market participation, which often signals potential large price movements.

Signals of Divergence from Capital Flows

Contrasting actions of institutions and large holders

The latest updates on ETH reveal clear divergence among market participants:

• A whale withdrew 20,000 ETH from multiple exchanges including Coinbase in the past 12 hours, worth $62.3 million
• Another whale or institution bought 12,166 ETH from Coinbase and other platforms 5 hours ago, worth $38.09 million
• An institution under Yi Lihua added 46,036.72 ETH on December 29, with an average cost reduced to $3105.5, just recovering from floating losses

What is the logic behind these data? Some large holders are withdrawing (possibly bearish or preparing to cash out), while others are accumulating at low levels (optimistic about the future). Such divergence is common at market bottoms—smart money is positioning itself amid disagreement.

Risk signals from short positions

The news also mentions a trader continuously increasing their ETH short positions, now holding 21,820.69 ETH with an unrealized loss of $719,000. This indicates that some market participants are betting on ETH’s decline, but currently, these shorts are in loss.

Support from the Overall Market Environment

The entire crypto sector is rising

Market data on the same day shows a bullish trend across the crypto space:

• AI sector up 6.44% in 24 hours, leading the market
• Bitcoin up 2.37%, breaking above $93,000
• ETH up 2.04%, breaking above $3200 (early data)
• Meme sector up 6.23%, NFT sector up 6.17%, Layer2 sector up 4.32%

This context is very important. ETH’s short-term correction is not happening in a declining market but within a rising sector. This suggests that the 3150 level could be a good buying point.

Insights from ETF capital flows

According to data from January 2, ETF flows show:

• Bitcoin ETF had a net outflow of 2,061 BTC (about $1.84 billion)
• Ethereum ETF had a net inflow of 12,930 ETH (about $39.82 million)
• Solana ETF had a net inflow of 30,799 SOL (about $3.97 million)

This indicates that while BTC ETFs experienced outflows, ETH ETFs are attracting funds. It is a positive sign.

Summary

ETH breaking below 3150 is not necessarily bad news; rather, it is a normal correction within a bullish market environment supported by institutional divergence and capital flows. Key points to watch are:

• Short-term volatility does not change the medium-term upward trend (7-day and 30-day are still positive)
• Large holders’ accumulation and ETF inflows suggest institutions remain optimistic
• The support around 3150 is relatively strong, possibly testing the market bottom
• Future focus on whether ETH can hold above 3200 and break higher

In such a market environment, short-term technical corrections often present good opportunities for medium-term positioning.