US Spot Ethereum ETFs See $78.1M Net Outflow as Extreme Fear Grips Market

VADODARA, February 5, 2026 — U.S. spot Ethereum ETFs recorded a sharp $78.11 million net outflow on February 4. This daily crypto analysis reveals a swift reversal after just one day of inflows. According to TraderT data, no individual fund registered net inflows. BlackRock's iShares Ethereum Trust (ETHA) led the exodus with -$57.58 million. Fidelity's Fidelity Ethereum Fund (FETH) followed with -$20.53 million.

Investigation: The ETF Liquidity Grab

Data from TraderT confirms the outflow event. The reversal occurred immediately after a brief inflow period. This pattern suggests a classic liquidity grab. Large holders are exiting ETF wrappers to seek cash or redeploy capital. The concentrated selling from top-tier issuers like BlackRock and Fidelity amplifies the signal. Market structure indicates coordinated risk-off behavior.

Market Context & Historical Precedent

Historically, ETF flow reversals precede volatile price discovery phases. The current extreme fear sentiment, scoring 12/100, mirrors conditions seen in late 2022. In contrast, the 2024-2025 bull run sustained consistent ETF inflows. Underlying this trend is a macro shift towards risk aversion. This outflow event coincides with broader market stress. For instance, Bitcoin ETFs have also faced significant redemptions recently. , derivatives markets reflect similar pessimism, as seen in bearish futures skew and long/short ratios.

Technical Architecture & Price Action

Ethereum price action shows critical technical damage. The asset trades at $2,087.12, down 8.51% in 24 hours. A major Fair Value Gap (FVG) exists between $2,150 and $2,200. The 200-day moving average at $2,050 provides nominal support. However, the Volume Profile Point of Control (VPOC) sits lower near $1,950. The Relative Strength Index (RSI) on the daily chart prints at 28, signaling oversold conditions. A Fibonacci retracement from the 2025 all-time high shows the 0.618 level at $1,920. This confluence creates a high-probability Order Block for institutional buyers.

By The Numbers

Why It Matters

This matters for portfolio liquidity and market structure. Spot ETF flows represent institutional capital allocation decisions. A net outflow removes direct buying pressure from the underlying asset. Consequently, it exacerbates selling pressure on Ethereum's order books. The shift impacts Ethereum's post-merge issuance economics. Staking yields may face downward pressure if liquid staking token (LST) demand wanes. Retail sentiment often follows institutional lead with a lag. This creates a negative feedback loop for prices.

Expert Commentary

The $78 million outflow is a clear risk-off signal. It invalidates the brief inflow narrative from the prior day. Market participants are re-evaluating exposure amid macro uncertainty and regulatory overhang. The key watch is whether this triggers a cascade in Grayscale's ETHE or other wrapped products.

— CoinMarketBuzz Intelligence Desk

Market Outlook & Price Scenarios

Two primary technical scenarios emerge from current market structure.

• Bullish Invalidation Level: $2,150. A daily close above this resistance fills the FVG and suggests the outflow was absorbed. It would indicate a potential false breakdown and shift sentiment.
• Bearish Invalidation Level: $1,950. A sustained break below the Volume Profile POC confirms the downtrend acceleration. It opens the path to test the Fibonacci 0.618 level at $1,920.

The 12-month institutional outlook hinges on macroeconomic policy and Ethereum's Pectra upgrade timeline. If the Federal Reserve signals dovish pivot, capital may return to risk assets. However, continued outflows could prolong the consolidation phase. The 5-year horizon remains tied to Ethereum's scaling roadmap and institutional adoption of its official blockchain infrastructure.