• Spot flows, including ETFs, turned negative, wiping out recent gains.
• Why a short term leverage shakedown played out recently and what’s next as whales make a comeback.

An unexpected wave of sell pressure has wiped out the recent gains that Ethereum [ETH] achieved in its first few days of January.

There were multiple reasons behind the sell pressure, including a leverage shake-down and spot outflows, among others.

ETH spot ETF outflows were arguably the most noteworthy sign of sell pressure. It had initially kicked off this week with $128.7 million worth of inflows on the 6th of January, building on the inflows from the 3rd of January.

This may have created a false sense of relief, and resulted in a FUD-filled selloff after ETFs pivoted on the 7th of January.

In contrast, Bitcoin ETFs were still positive in the last 24 hours despite the opposite outcome on ETH’s side. This was a reflection of the dominance situation.

ETH ETF outflows amounted to $86.8 million on the 7th of January. This was consistent with the total negative spot flows observed on exchanges during the same period. Outflows peaked at $235.66 million on this date.

ETH dominance dips, but could be ready to pivot

The recent sell pressure hammered down on ETH dominance, which previously rallied as high as 12.87% during the weekend. However, the latest turn of events sent it as low as 12.32%.

ETH might attempt another crack at higher dominance from its current level. This because the same zone previously demonstrated support.