Ethereum has been consolidating below the $2,000 level since the sharp market decline seen in early February. Despite occasional attempts to bounce back, price action continues to reflect trader caution, with increased volatility and limited momentum. The inability to regain this psychological threshold has reinforced the market’s defensive posture as investors consider macro uncertainty, liquidity conditions, and broader crypto sentiment.
A recent CryptoQuant report provides additional context from an on-chain perspective. According to our analysis, the Ethereum Coinbase Premium Index remains primarily in negative territory, indicating relatively weak demand from US-based investors. This indicator compares Coinbase’s spot price to spot prices on other major exchanges and provides insight into regional buying pressure. The persistent negative readings suggest that positive spot accumulation from US participants is almost non-existent at the current adjustment stage.
This pattern is consistent with the broader technical structure seen on the price chart, where the rally is struggling to gain follow-through. While consolidation does not necessarily mean further decline, sustained weakness in spot demand will typically delay the recovery phase, leaving Ethereum sensitive to changes in liquidity, macro conditions, and investor confidence in the short term.
Coinbase Premium Rebound Signals Potential Change in Demand
The report further notes that the Coinbase Premium Index has shown a notable upward trend recently. Although this indicator remains below the neutral threshold, the strength of the move suggests that selling pressure from US-based investors may be starting to ease. This change is relevant because the index reflects the difference between the Ethereum spot price on Coinbase and the Ethereum spot price on other major exchanges, and is a proxy for regional demand trends.
If the current upward momentum continues and the index moves into positive territory and turns green, it would signal renewed interest in spot buying by US market participants. Historically, sustained positive readings often coincide with stronger phases of accumulation, helping to stabilize price movements after a period of corrective pressure.
Such a development could be particularly significant if it coincides with a technical breakout from the triangle structure currently seen on the chart. In that scenario, on-chain demand improvements and constructive pricing structures will be mutually reinforcing. While this does not guarantee an immediate rally, this combination could increase the likelihood of a more sustained recovery phase, especially if broader liquidity conditions and market sentiment also start to improve.
Ethereum holdings after the crash
Ethereum remains under clear technical pressure after losing momentum below the $2,000 level, with the chart showing a sustained downtrend following a peak near $4,800 in late 2025. The price trend has shifted decisively to the bearish side, characterized by a series of lower highs and lower lows confirming a broader correction structure rather than a temporary decline.
The recent decline accelerated as ETH lost confluence support near the 200-period moving average, triggering a sharp decline towards the $1,900-$2,000 zone. This area is currently acting as a weak stabilizing area rather than a solid support. Trading volumes increased during the decline, suggesting forced position adjustments rather than organic accumulation.
From a trend perspective, ETH continues to trade below all major moving averages, which are still trending downward. This configuration typically reflects persistent macro weakness and limited buyer confidence. A sustained recovery would require a return to the $2,400-$2,600 area, where the previous support turned into resistance.
Until that happens, the market structure will remain fragile. While continued consolidation around current levels could signal base formation, another rejection below $2,000 would increase the likelihood of a deeper retracement towards the historic demand zone around the mid-$1,600s.
Featured image from ChatGPT, chart from TradingView.com
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