Ethereum has remained stuck in a consolidation phase below the $2,000 level since the sharp market decline seen in early February. Despite occasional rebound attempts, price action continues to reflect traders’ caution, with high volatility and limited momentum. The failure to recover this psychological threshold has reinforced a defensive market posture, as investors weigh macro uncertainty, liquidity conditions and broader crypto sentiment.
A recent CryptoQuant report provides additional context from an on-chain perspective. According to the analysis, the Ethereum Coinbase Premium Index remained mostly in negative territory, signaling relatively weak demand from U.S.-based investors. This metric compares spot prices on Coinbase with those on other major exchanges, providing insight into regional buying pressure. The persistent negative results suggest that aggressive one-off accumulation by U.S. participants has been largely absent during the current corrective phase.
This trend aligns with the broader technical structure visible on price charts, where rallies have struggled to continue. Although consolidation does not necessarily imply further declines, persistent weakness in spot demand typically delays recovery phases, making Ethereum susceptible to changes in liquidity, macroeconomic conditions, and investor sentiment in the short term.
Coinbase Premium rebound signals potential shift in demand
The report further notes that the Coinbase Premium Index has recently shown a notable upward rebound. Although the indicator remains below the neutral threshold, the strength of the move suggests that selling pressure from US-based investors may begin to ease. This change is relevant because the index reflects the difference between Ethereum spot prices on Coinbase and those of other major exchanges, making it an indicator of regional demand dynamics.
If the current bullish momentum continues and the index moves into positive territory, turning green, this would indicate renewed interest in spot buying from US market participants. Historically, sustained positive results have often coincided with phases of stronger accumulation, which can help stabilize price action following periods of corrective pressure.
Such a development could become particularly significant if it aligns with a technical breakout of the triangle structure currently visible on the charts. In this scenario, improving on-chain demand and a constructive pricing structure would reinforce each other. While this does not guarantee an immediate recovery, this combination could increase the likelihood of a more sustainable recovery phase, especially if overall liquidity conditions and market sentiment also begin to improve.
Ethereum holds steady after strong outage
Ethereum remains under clear technical pressure after losing momentum below the $2,000 level, with the chart showing a sustained downtrend following the late 2025 high near $4,800. Price action has turned decidedly bearish, marked by a sequence of lower highs and lower lows that confirms a broader corrective structure rather than a temporary pullback.
The recent breakdown accelerated once ETH lost confluence support around the 200-period moving average, triggering a sharp decline towards the $1,900-$2,000 area. This area now functions as a fragile stabilization zone rather than firm support. Trading volumes increased during the sell-off, suggesting forced positioning adjustments rather than organic accumulation.
From a trend perspective, ETH continues to trade below all major moving averages, which remain lower. This setup generally reflects continued macroeconomic weakness and limited buyer conviction. Any lasting recovery would likely require reclaiming the $2,400-$2,600 region, where previous support turned into resistance.
In the meantime, the market structure remains vulnerable. Continued consolidation near current levels could indicate the formation of a base, but another rejection below $2,000 would increase the likelihood of a deeper retracement towards historical demand zones near the mid-$1,600 range.
Featured image from ChatGPT, chart from TradingView.com
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