Crypto traders usually interpret negative funding rates as signs to buy, yet this week’s unpredictable US earnings results may obscure their significance for Ethereum (ETH) holders.

Key Highlights:

• Ether saw a sharp 28% dip over a week, settling at $2,110 as traders pulled back, leading to significant liquidation in leveraged positions.
• Net outflows from Ethereum spot ETFs amounted to $447 million, alongside a 47% decline in Ethereum network engagement.

Ethereum’s price fall on Tuesday to $2,110 indicates instability in the market, which has prompted investors to retreat into cash or government bonds, as the Nasdaq also faced a decline of 1.4%.

Traders are increasingly concerned that overreliance on the AI sector has led to inflated valuations. Sentiment worsened after Nvidia’s CEO Jensen Huang dismissed any plans to invest $100 billion in OpenAI.

The markets are bracing for added turbulence after lukewarm results from PayPal, while precious metals like gold and silver reacted positively, suggesting skepticism towards the US Federal Reserve’s plans to avoid a recession.

The declining demand for bullish ETH positions reflects growing wariness among traders regarding inflated stock valuations.

As demand for ETH has waned, $447 million in outflows from US-listed Ethereum ETFs signified a cooling professional interest. Major firms still accumulate ETH, but the overall appetite has decreased.

Trading activities on Ethereum platforms dropped to $52.8 billion in January, down from $98.9 billion in October 2025, which has contributed to diminished incentives for ETH holders.

Additionally, Vitalik Buterin sold $2.3 million worth of ETH, planning to allocate $45 million towards various philanthropic projects.

The current sentiment remains cautious amidst prevailing economic uncertainties, and the lack of demand for ETH futures should not be seen as a quick recovery signal.