Ethereum is finally moving. Honestly, if you’ve been watching the charts for the last year, it’s been a bit of a slog. While other coins were hitting fresh highs, Ether felt like it was stuck in the mud, barely keeping its head above $2,800. But the vibe changed fast this January. As of today, January 18, 2026, the price is hovering around **$3,310**, up more than 11% since the start of the month.
People are starting to ask: why is ethereum going up now?
It isn't just one thing. It's a mix of big Wall Street money finally finding the "buy" button and some heavy-duty technical upgrades that actually worked. We’re seeing record-breaking network activity that makes the 2021 bull market look like a practice round.
The ETF Floodgates Are Actually Opening
Remember when everyone said the spot Ethereum ETFs were going to be a "flop" compared to Bitcoin? Well, the narrative is shifting. In just the last four days, U.S.-based spot Ethereum ETFs pulled in $474.6 million in net inflows. That’s not retail traders "aping" in; that’s institutional re-entry.
Wednesday alone saw $175.1 million flow in. That was the biggest single day for the ETFs since early December.
When BlackRock and Fidelity start buying thousands of ETH daily to back their shares, it creates a supply crunch. Right now, institutional buying—which includes these ETFs and corporate treasuries—is eating up about 6,964 ETH per day. That’s outpacing the new supply being minted. Basic math tells you where the price goes when there’s more demand than stuff to sell.
The "Fusaka" Effect and the 1-Cent Fee
Technology usually bores investors until it starts making things cheaper. The Fusaka upgrade, which went live in December 2025, was a massive turning point. It introduced PeerDAS (Peer Data Availability Sampling), which is a fancy way of saying it made the network much better at handling massive amounts of data.
Why does that matter to you? Layer 2 fees.
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If you’ve used Base, Arbitrum, or Optimism lately, you’ve probably noticed transactions costing less than a penny. We’re talking under $0.01. Analysts like FenoXBT have pointed out that this is "what real scaling looks like." Low fees have triggered an explosion in usage:
- Daily transactions just hit a record 2.9 million.
- Active addresses are at a 28-month high, nearly touching 1 million daily.
- New wallets are flooding the network, which shows this isn't just the same old whales moving money around.
The Staking Milestone: $120 Billion Locked Away
One of the biggest reasons for the price floor is that people simply aren't selling. We just hit a massive milestone: 30% of all circulating Ethereum is now staked.
That’s roughly $120 billion worth of Ether locked up to secure the network. When you stake, your coins are effectively off the market. Bitmine, a major digital asset treasury, recently dumped another $600 million into staking, bringing their total to about $6 billion. Tom Lee, the chair of Bitmine and a long-time bull, thinks this staking yield is going to be the primary reason institutions stick around. They aren't just looking for price gains; they want that "internet bond" yield.
Tokenization is Moving from Hype to Reality
You’ve probably heard the buzzword "Real World Assets" (RWA). In 2026, it’s actually happening on Ethereum.
Most of the "tokenized gold" rush is happening right here. According to recent data from RWA.xyz, Ethereum is home to $12.5 billion in tokenized assets. That is over 65% of the entire market. Compare that to its competitors: BNB Chain has about $2 billion, and Solana is still under $1 billion in this specific category.
Standard Chartered analyst Geoff Kendrick recently told investors he expects Ethereum to outperform Bitcoin this year because of this "utility" factor. When a bank wants to tokenize a U.S. Treasury bill or a money market fund, they almost always pick Ethereum because that’s where the most liquidity is.
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What the Experts are Betting On
There’s a pretty wide gap in where people think this goes next. Tom Lee is calling for a move to $7,000 or $9,000 by later this year. He thinks we're entering a "supercycle" where Ethereum becomes the settlement layer for the world’s finance.
On the flip side, some technical analysts are a bit more cautious. They’re watching the $3,050 to $3,170 zone as "must-hold" support. If the price stays above that, the target for the current breakout is around $4,500.
Is there a catch? Always.
The U.S. Senate Banking Committee recently delayed a major crypto market structure bill. That's caused a bit of "sour mood" in some corners of D.C., and if regulatory clarity stalls, it could put a lid on the rally. Plus, we’re still seeing some "sell-the-news" volatility every time a new upgrade happens.
Practical Steps for the Current Market
If you're looking at why is ethereum going up and trying to figure out your next move, keep it simple. Watch the ETF inflow data from places like Farside Investors; if that stays positive, the "institutional bid" is still there.
Check the "Gas" prices. If the mainnet stays busy but Layer 2 fees stay low, the network is healthy. Most importantly, don't get blinded by the $40,000 "long-term" targets you see in the headlines. Focus on the immediate resistance at **$3,584**. If Ether clears that with high volume, the path to $4,000 is wide open.
Keep an eye on the Ethereum/Bitcoin (ETH/BTC) ratio. For two years, Ether was the underdog. In the last three weeks, it's finally started clawing back ground against Bitcoin. That’s usually the first sign of a broader "altseason" where the rest of the market follows Ethereum's lead.