Ethereum Coinbase Premium Jumps – Is US Selling Pressure Finally Ending?
Ethereum has remained locked in a consolidation phase below the $2,000 level since the sharp market decline seen at the beginning of February. Despite attempts to pull back from time to time, price action continues to show caution among traders, with high volatility and limited momentum. The inability to recover from this psychological barrier has strengthened the market’s defensive stance, as investors weigh greater uncertainty, liquidity conditions, and broader crypto sentiment.
A recent CryptoQuant report provides more context from an on-chain perspective. According to the analysis, the Ethereum Coinbase Premium Index has remained mostly in negative territory, indicating weak demand from US investors. This metric compares prices on Coinbase to those on other major markets, providing insight into the region’s buying pressure. The persistent negative reading suggests that the accumulation of aggressive spots in the US participants was significantly absent during the current conditioning phase.
This pattern coincides with a broad technical structure seen on price charts, where rallies are difficult to trace. While consolidation does not necessarily mean another downturn, continued weakness in local demand often delays recovery phases, leaving Ethereum vulnerable to currency fluctuations, capital conditions, and investor confidence in the near term.
Coinbase Premium Rebound Signals a Potential Change in Demand
The report goes on to note that the Coinbase Premium Index recently showed a noticeable upward trend. Although the index remains below the neutral threshold, the strength of the move suggests that selling pressure from US investors may begin to ease. This change is important because the index shows the difference between Ethereum prices on Coinbase and those on other major markets, making it representative of regional demand dynamics.
If the current upward momentum continues and the indicator moves into positive territory, turning green, it will indicate renewed buying interest among US market participants. Historically, sustained positive readings are often accompanied by periods of strong accumulation, which can help stabilize price action after periods of corrective pressure.
Such development can be seen especially if it is accompanied by a technical divergence from the triangle structure currently seen on the charts. In that case, developing on-chain demand and the value structure it creates will reinforce each other. While this does not guarantee an immediate rally, the combination could increase the chances of a long-term recovery phase, especially if broader currency conditions and market sentiment also begin to improve.
Ethereum Holds Up After Sharp Split
Ethereum remains under clear technical pressure after losing momentum below the $2,000 level, with the chart showing a further decline following the 2025 high of late $4,800. Price action has been decisively volatile, marked by a series of highs and lows that confirm a broad corrective structure rather than a short-term pullback.
The recent decline accelerated when ETH lost confluence support near the 200-period moving average, resulting in a major decline in the $1,900–$2,000 area. This area now acts as a weak stabilizing distance rather than a strong support. Trading prices increased during the selloff, suggesting a forced stoppage correction rather than organic accumulation.
From a trend point of view, ETH continues to trade below all major moving averages, which are constantly pulling back. This setup generally indicates continued significant weakness and limited consumer confidence. Any further recovery may need to regain the $2,400–$2,600 region, where previous support has turned into resistance.
Until that happens, market structure remains vulnerable. Continued consolidation near current levels could indicate base formation, but another rejection below $2,000 will increase the chances of a deep pullback to historically high demand near the $1,600 mid-range.
Featured image from ChatGPT, chart from TradingView.com
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