{"id":65844,"date":"2026-01-07T13:09:01","date_gmt":"2026-01-07T13:09:01","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/ethereum-extends-rally-on-etf-inflows-and-blob-upgrade-but-rsi-flags-caution\/"},"modified":"2026-01-07T13:09:01","modified_gmt":"2026-01-07T13:09:01","slug":"ethereum-extends-rally-on-etf-inflows-and-blob-upgrade-but-rsi-flags-caution","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/ethereum-extends-rally-on-etf-inflows-and-blob-upgrade-but-rsi-flags-caution\/","title":{"rendered":"Ethereum extends rally on ETF Inflows and Blob upgrade, but RSI flags caution"},"content":{"rendered":"<p><b>(Originally posted on : CoinJournal: Latest Crypto News, Altcoin News and Cryptocurrency Comparison )<\/b><br \/>\n<\/p>\n<div data-site=\"CoinJournal\">\n<div class=\"-mt-16  mb-8  lg:-mt-20  rounded-md  shadow-md\">\n<div class=\"relative  z-10  post-article-image  rounded  overflow-hidden\" data-site=\"CoinJournal\">\n<picture><source srcset=\"https:\/\/coinjournal.net\/wp-content\/uploads\/imagecache\/2025\/08\/Ethereum-smartcrop-750x375.webp\" type=\"image\/webp\" media=\"(min-width: 750px)\"\/><source srcset=\"https:\/\/coinjournal.net\/wp-content\/uploads\/imagecache\/2025\/08\/Ethereum-smartcrop-363x181.webp\" type=\"image\/webp\"\/><source srcset=\"https:\/\/coinjournal.net\/wp-content\/uploads\/imagecache\/2025\/08\/Ethereum-smartcrop-750x375.png\" type=\"image\/jpeg\" media=\"(min-width: 750px)\"\/><source srcset=\"https:\/\/coinjournal.net\/wp-content\/uploads\/imagecache\/2025\/08\/Ethereum-smartcrop-363x181.png\" type=\"image\/jpeg\"\/>\n<\/picture>                            <\/div>\n<\/p><\/div>\n<ul>\n<li>Ethereum ETF inflows and whale accumulation boost the ETH price rally.<\/li>\n<li>The BPO hard fork has raised the blob limit, improving Ethereum scalability.<\/li>\n<li>An overbought RSI signals possible short-term volatility despite strong.<\/li>\n<\/ul>\n<p>Ethereum has continued its upward price momentum, extending a strong weekly rally even as the broader crypto market slipped slightly.<\/p>\n<p>At press time, Ethereum (ETH) was up 1.13% over the past 24 hours, building on a robust 7-day gain of roughly 9.60%.<\/p>\n<p>These price gains come despite a modest 0.44% decline in the overall crypto market, underscoring Ethereum\u2019s relative strength.<\/p>\n<p>The ETH bullish momentum is underpinned by a combination of institutional demand, improving Ethereum scalability, and favourable on-chain dynamics.<\/p>\n<p>However, technical indicators suggest that caution may be warranted in the near term with the RSI currently in the overbought region.<\/p>\n<h2>ETF inflows reinforce Ethereum\u2019s institutional narrative<\/h2>\n<p>One of the key catalysts for the Ethereum rally has been sustained inflows into spot Ethereum ETFs.<\/p>\n<p><a href=\"https:\/\/www.coinglass.com\/eth-etf\">Data from Coinglass<\/a> shows that spot Ethereum ETFs attracted approximately $114.7 million in net inflows on January 6, 2026.<\/p>\n<p>These inflows occurred even as some legacy products recorded outflows, suggesting fresh institutional capital is entering the market.<\/p>\n<p>For investors, ETF demand signals growing confidence in Ethereum as a long-term, regulated asset.<\/p>\n<p>It also helps absorb potential selling pressure, providing price stability during periods of broader market uncertainty.<\/p>\n<p>Market participants increasingly view ETF flows as a barometer of institutional sentiment, similar to how <a href=\"https:\/\/ycharts.com\/indicators\/ethereum_average_transaction_fee\">YCharts data<\/a> is often used to track macro trends across traditional assets.<\/p>\n<h2>Blob Parameter-Only hard fork boosts Ethereum scalability<\/h2>\n<p>Beyond demand-side factors, Ethereum\u2019s fundamentals have improved following recent network upgrades.<\/p>\n<p>The <a href=\"https:\/\/consensys.io\/ethereum-fusaka-upgrade\">Fusaka upgrade<\/a>, activated in December 2025, introduced meaningful enhancements to Ethereum scalability.<\/p>\n<p>Central to this progress is the Blob Parameter-Only hard fork, commonly referred to as the BPO hard fork.<\/p>\n<p>The BPO hard fork, <a href=\"https:\/\/lab.ethpandaops.io\/ethereum\/forks\/bpo2\">which went live on Wednesday at 1:01:11 UTC<\/a>, raised the blob limit per block, increasing the amount of data that can be processed efficiently.<\/p>\n<p>By expanding blob capacity, Ethereum reduced data costs for Layer-2 rollups without overburdening the base layer.<\/p>\n<p>This design aligns with Ethereum\u2019s long-term rollup-centric roadmap championed by Ethereum co-founder Vitalik Buterin.<\/p>\n<p>Lower Layer-2 fees have already translated into stronger network usage, with daily transactions reaching multi-month highs.<\/p>\n<p>The BPO upgrade also improves conditions for advanced scaling solutions, including zero-knowledge Ethereum virtual machines (zkEVMs).<\/p>\n<p>These zkEVMs rely heavily on efficient data availability, making the higher blob limit a structural advantage.<\/p>\n<p>Developers view BPO as a stepping stone toward even larger upgrades, including the planned <a href=\"https:\/\/coinjournal.net\/news\/ethereum-developers-reveal-the-next-upgrade-hegota\/\">Glamsterdam hard fork<\/a>, which is expected later in 2026.<\/p>\n<p>The Glamsterdam hard fork is expected to further enhance throughput and computational efficiency across the Ethereum ecosystem.<\/p>\n<p>Together, these changes strengthen Ethereum\u2019s value proposition as a scalable settlement layer for decentralised applications.<\/p>\n<h2>Whale accumulation supports price, but momentum overheats<\/h2>\n<p>On-chain data adds another layer of support to Ethereum\u2019s bullish narrative.<\/p>\n<p>Large holders, often referred to as whales, have accumulated more than 3.62 million ETH over the past month, <a href=\"https:\/\/cryptoquant.com\/analytics\/query\/65e6a5e6830b4403b137994c?v=65ef3747afc8f17fcb7a2305&amp;img=link%2F68b0cf6a8b384526675a0907.png\">according to CryptoQuant data<\/a>.<\/p>\n<p>At the same time, Ethereum exchange reserves have fallen to levels not seen in nearly nine years.<\/p>\n<figure id=\"attachment_356690\" aria-describedby=\"caption-attachment-356690\" class=\"wp-caption alignnone\"><img loading=\"lazy\" fetchpriority=\"high\" decoding=\"async\" data-source=\"CoinJournal\" class=\"wp-image-356690 size-full\" src=\"https:\/\/coinjournal.net\/wp-content\/uploads\/2026\/01\/Ethereum-Exchange-Reserve-All-Exchanges.png\" alt=\"Ethereum Exchange Reserve\" width=\"4000\" height=\"2250\"\/><figcaption id=\"caption-attachment-356690\" class=\"wp-caption-text\">Source: <a href=\"https:\/\/cryptoquant.com\/asset\/eth\/chart\/exchange-flows\/exchange-reserve?exchange=all_exchange&amp;window=DAY&amp;sma=0&amp;ema=0&amp;priceScale=log&amp;metricScale=linear&amp;chartStyle=line\">CryptoQuant<\/a><\/figcaption><\/figure>\n<p>Reduced exchange balances typically imply lower immediate selling pressure.<\/p>\n<p>This pattern suggests that long-term holders are positioning for higher prices rather than short-term exits.<\/p>\n<p>However, momentum indicators are beginning to flash warning signs.<\/p>\n<p>Ethereum\u2019s relative strength index (RSI) has climbed to around 64, placing it near the overbought territory.<\/p>\n<p>Historically, such elevated RSI readings can precede short-term pullbacks or periods of consolidation.<\/p>\n<p>Upcoming derivatives events, including near-term options expiries, could amplify volatility.<\/p>\n<h2>Ethereum price forecast<\/h2>\n<p>Ethereum\u2019s medium- to long-term outlook remains constructive, supported by ETF inflows, improving Ethereum scalability, and a declining liquid supply.<\/p>\n<p>The Blob Parameter-Only hard fork and higher blob limit strengthen the network\u2019s technical foundation and support Layer-2 growth.<\/p>\n<p>Continued progress toward upgrades like the Glamsterdam hard fork keeps Ethereum aligned with Vitalik Buterin\u2019s long-term vision.<\/p>\n<p>Currently, the immediate resistance for ETH lies at the 100-day EMA at $3,307, which, if broken, could open the door for further gains towards the next resistance at the 200-day EMA at $3,352.<\/p>\n<figure id=\"attachment_356689\" aria-describedby=\"caption-attachment-356689\" class=\"wp-caption alignnone\"><img loading=\"lazy\" decoding=\"async\" data-source=\"CoinJournal\" class=\"wp-image-356689 size-full\" src=\"https:\/\/coinjournal.net\/wp-content\/uploads\/2026\/01\/Ethereum-price-analysis.png\" alt=\"Ethereum price analysis\" width=\"1367\" height=\"843\"\/><figcaption id=\"caption-attachment-356689\" class=\"wp-caption-text\">Ethereum price analysis | Source: <a href=\"https:\/\/www.tradingview.com\/chart\/n7WskMvZ\/?symbol=CRYPTO%3AETHUSD\">TradingView<\/a><\/figcaption><\/figure>\n<p>In the short term, however, the elevated RSI suggests traders should be prepared for potential price fluctuations that could pull Ethereum down to the support at the 50-day EMA at $3,132.<\/p>\n<p>But if ETF inflows remain strong and on-chain accumulation persists, any pullback may be shallow.<\/p>\n<p>Overall, Ethereum appears well-positioned for further gains, but near-term caution is warranted as momentum cools.<\/p>\n<div class=\"post-meta\">\n<hr class=\"mb-6\"\/>\n<h6 class=\"text-3xl  mb-4  text-green-300\">Share this article<\/h6>\n<hr class=\"mb-6\"\/>\n<h6 class=\"text-3xl  mb-4  text-green-300\">Categories<\/h6>\n<\/p><\/div>\n<\/p><\/div>\n<p><a href=\"https:\/\/coinjournal.net\/news\/ethereum-extends-rally-on-etf-inflows-and-blob-upgrade-but-rsi-flags-caution\/\">Source link <\/a><br \/>\n<br \/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>(Originally posted on : CoinJournal: Latest Crypto News, Altcoin News and Cryptocurrency Comparison ) Ethereum ETF inflows and whale accumulation boost the ETH price rally. The BPO hard fork has raised the blob limit, improving Ethereum scalability. An overbought RSI signals possible short-term volatility despite strong. Ethereum has continued its upward price momentum, extending a [&hellip;]<\/p>\n","protected":false},"author":7,"featured_media":65845,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0},"categories":[35],"tags":[],"_links":{"self":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/65844"}],"collection":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/users\/7"}],"replies":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/comments?post=65844"}],"version-history":[{"count":0,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/65844\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media\/65845"}],"wp:attachment":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media?parent=65844"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/categories?post=65844"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/tags?post=65844"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}