RT☁777 Today's Analysis

ETH hits 2500U!!!
1.26 ETH collapsed! The 2800 level was directly broken through, nearly 500 million in longs wiped out, 2742 has another 2.87 billion liquidation trigger, inflation surges, mainnet is completely cooling off.

On 2026.1.26, ETH experienced a free-fall crash, now at $2785, down 3.52% in 24h. ETH was smashed through the critical support at 2800 without resistance, triggering the previously warned $803 million long liquidation threshold. The total ETH liquidation in the network over 24h reached $498 million, with 92% being retail longs forced to liquidate. Liquidation alerts flooded the community, retail investors bottom-fishing at 2800 are being pressed to the ground and rubbed in.

Even more deadly, the guillotine is just inches away! As long as it falls below $2742, $287 million in longs on major CEXs will be liquidated with one click. The main players are not giving any rebound chances, with large sell orders exceeding 20,000 ETH per hour. Retail investors buy the dip, while the big players smash as much as they can. The 2700 level is a mere formality; breaking below it means heading straight for 2500!

The deflation myth is completely shattered!
Data shows that ETH's annual inflation rate has surged from 0.8% to 0.97%. The PoS staking issuance has completely overshadowed gas burns. On-chain transactions nearly halted after the crash, gas fees dropped to $0.012, a January low, with daily burn rates plummeting 65%. The community's boast of "ultrasound money" is now just ongoing money printing, an inflationary currency with no cover!

L2 vampirism + mainnet collapse, ETH ecosystem is done for! During the crash, L2 funds accelerated outflows, with Arbitrum losing $76.8 million in one hour, and Optimism also seeing large withdrawals. Institutions that initially invested $140 million in L2 have already fled the ETH ecosystem. The mainnet is even worse, with daily active addresses plunging 20% to 1.82 million, transaction volume halved to a new monthly low. Behind the absurdly low gas fees is a lack of speculative interest, making ETH mainnet a no-man’s land in the crypto market!

Institutions are turning around and dumping, voting with their feet! During ETH’s sharp decline, spot ETH ETFs experienced large net outflows again, with BlackRock’s ETH A ETF losing $48.9 million in one hour, and total net outflows from ETH-related ETFs reaching $62.3 million. Meanwhile, BTC ETFs attracted $230 million in inflows, and SOL ETFs saw $12 million in net inflows. Institutions are frantically selling ETH during the plunge. The so-called "top blockchain" has long been kicked out of core institutional holdings, not even worth a scrap!

Retail investors are being precisely targeted, pseudo-analysts are all scythes! From 2950 to 2800 to 2785, every support level has fake analysts calling for a bottom, but it’s all a trap set by the big players. Funding rates turn negative, the main players are too lazy to even pretend to dump, just naked shorting. Those still hoping to bottom at 2700 are just walking into the guillotine!

Stop holding any illusions! ETH is now a typical no-volume plunge, with the $287 million liquidation trigger at 2742 ready to explode. 2700 has no support at all. Cutting losses now can minimize damage; holding on till the end will only get you completely wiped out. This crash is the harshest lesson for all retail investors still blindly trusting ETH’s big brother status!