Ethereum has been stuck in a consolidation phase below the $2,000 level since the sharp market decline in early February. Price action continues to reflect traders’ caution, with volatility rising and momentum limited despite intermittent rebound attempts. The inability to recover from these psychological thresholds has reinforced a defensive market posture as investors consider macro uncertainty, liquidity conditions and broader cryptocurrency sentiment.
A recent CryptoQuant report provides additional context from an on-chain perspective. Analysis shows that the Ethereum Coinbase Premium Index remains primarily in negative territory, indicating relatively weak demand from US-based investors. This indicator compares spot prices on Coinbase to spot prices on other major exchanges, providing insight into buying pressure by region. The persistent negative figures suggest that aggressive in-kind accumulation by US participants has all but disappeared in the current correction phase.
This pattern is consistent with the broader technical structure seen on the price chart where the rally is struggling to follow through. While consolidation does not necessarily mean further declines, continued weakness in spot demand typically delays the recovery phase, making Ethereum sensitive to changes in liquidity, macro conditions, and investor confidence in the near term.
Coinbase Premium Rebound Signals Potential Demand Shift
The report also notes that the Coinbase Premium Index has recently seen a notable upward bounce. Although the indicator remains below the neutral threshold, the strength of the move suggests that selling pressure from US-based investors may be starting to ease. These changes are relevant because the index is representative of local demand dynamics, reflecting the difference between Ethereum spot prices on Coinbase and spot prices on other major exchanges.
If the current upward momentum continues and the index moves into positive territory and turns green, this would mean renewed spot buying interest among US market participants. Historically, sustained positive readings often coincide with a phase of consolidation, which can help stabilize price movements following a period of corrective pressure.
This development could become particularly significant if it coincides with a technical breakout of the triangle structure currently visible on the chart. In this scenario, improving on-chain demand and constructive pricing structures will reinforce each other. While this does not guarantee an immediate rebound, the combination could increase the likelihood of a more durable recovery phase, especially if the broader liquidity situation and market sentiment begin to improve.
Ethereum holdings after sharp collapse
Ethereum is under clear technical pressure after losing momentum below the $2,000 level, with charts showing a continued downward trend since its peak near $4,800 in late 2025. Price action has turned decidedly bearish, with a series of highs and lows confirming a broader correction structure rather than a temporary decline.
The recent collapse accelerated as ETH lost confluence support near the 200 moving average, triggering a sharp decline towards the $1,900-$2,000 area. This area now functions as a weak stabilizing range rather than a firm support zone. Volumes increased during the sell-off, suggesting the need for forced positioning adjustments rather than organic accumulation.
From a trend perspective, ETH continues to trade below all major moving averages and maintains a downtrend. This configuration generally reflects persistent macro weakness and limited buyer confidence. A sustained recovery would require a return to the $2,400-$2,600 area, where previous support turned into resistance.
Until then, market structures remain fragile. Continued consolidation near current levels could indicate a base formation, but another rejection below $2,000 would increase the likelihood of a deeper retracement to historical demand territory near the mid-$1,600 range.
Featured image from ChatGPT, chart from TradingView.com
editing process for focuses on providing thoroughly researched, accurate, and unbiased content. We adhere to strict sourcing standards and each page undergoes diligent review by our team of top technology experts and seasoned editors. This process ensures the integrity, relevance, and value of the content for readers.
