Ethereum Extends Rally on ETF Inflows and Blob Update, but RSI Flags Caution

Ethereum ETF earnings and whale stocks boost ETH price rally. BPO's dry fork has raised the blob limit, improving Ethereum expansion. An overbought RSI is strong but shows short-term volatility.

Ethereum continued its higher price rally, extending a strong weekly rally even as the broader crypto market fell slightly.

At press time, Ethereum (ETH) has gained 1.13% over the past 24 hours, building on a strong 7-day gain of about 9.60%.

These price gains highlight Ethereum's relative strength despite a modest 0.44% decline in the overall crypto market.

ETH's bullish momentum has been supported by institutional demand, improving Ethereum spreads, and a combination of favorable conditions on the chain.

However, technical indicators indicate that caution may be warranted in the near term with the RSI in a cautious range.

ETF earnings reinforce Ethereum's institutional narrative.

One of the key drivers for Ethereum's rally continues to be entry into Spot Ethereum ETFs.

According to data from Coinglass, the Spot Ethereum ETF attracted $114.7 million in net income on January 6, 2026.

These inflows occurred despite the exit of some older products, suggesting that new institutional capital is entering the market.

For investors, it represents a growing interest in ETFs as a long-term, regulated investment in Ethereum.

It also helps potential selling pressure by providing price stability in times of widespread market uncertainty.

Market participants look to ETF flows as a barometer of institutional sentiment, similar to how YCharts data is used to track macro trends in traditional assets.

Blob Parameter-only hard fork increases the Ethereum scale

Beyond demand-side factors, Ethereum's fundamentals have improved following recent network upgrades.

The Fusaka update, which was activated in December 2025, introduced meaningful improvements to Ethereum's expansion.

Central to this development is the Blob Parameter-only hard fork, commonly referred to as the BPO hard fork.

The BPO hard fork, which went live at 1:01:11 UTC on Wednesday, raised the blob limit per block and increased the amount of data that can be efficiently processed.

By expanding blob capacity, Ethereum has reduced data costs for Layer-2 packets without overloading the base layer.

This design fits the long-term package central road map championed by Ethereum founder Vitalik Buterin.

Lower Layer-2 payments have already translated into strong network usage, with daily transactions reaching multi-month highs.

BPO optimization improves conditions for advanced scale solutions including Zero Knowledge Ethereum Virtual Machines (zkEVMs).

These zkEVMs rely heavily on efficient data provisioning, which makes the maximum blob limit a structural advantage.

Developers see the BPO as a stepping stone for larger upgrades, including the planned Glamsterdam hard fork, expected later in 2026.

The Glumsterdam hard fork is expected to further increase the throughput and computational efficiency in the Ethereum ecosystem.

Together, these changes reinforce the idea of ​​Ethereum's value as a scalable settlement layer for decentralized applications.

Whale stocks will support prices, but heat up quickly

The on-chain data adds another layer of support to the Ethereum bullish narrative.

According to CryptoQuant data, in the last month more than 3.62 million ETH have been stored in large containers, often referred to as whales.

At the same time, Ethereum exchange reserves fell to a level not seen in almost nine years.

Reduced exchange rates especially reduce immediate selling pressure.

This pattern indicates that long-term holders are positioning for higher prices rather than short-term exits.

However, speed indicators have started flashing warning signs.

Ethereum's Relative Strength Index (RSI) rose to around 64, placing it near overbought territory.

Historically, such high RSI readings can precede short-term reversals or periods of consolidation.

Future derivatives, including future options expirations, may increase volatility.

Ethereum price prediction

Ethereum's mid- to long-term outlook remains constructive, supported by ETF revenues, improving Ethereum's scale and decreasing liquidity.

Blob scaling – Only hard forks and high blob limits strengthen the technical foundation of the network and support Layer-2 growth.

Continued progress towards improvements like the Glamsterdam hard fork puts Ethereum in line with Vitalik Buterin's long-term vision.

Currently, immediate resistance for ETH is at the 100-day EMA at $3,307, which, if broken, could open the door to further gains at the 200-day EMA at $3,352.

In the short term, however, a higher RSI traders should prepare for price fluctuations that could pull Ethereum to support at the 50-day EMA at $3,132.

But any pullback is likely to be shallow if EFF inflows remain strong and the chain continues to accumulate.

Overall, Ethereum seems well-positioned for continued gains, but near-term caution is warranted as momentum cools.