Ethereum Under Pressure: US Spot Demand Fades, Signaling Further Weakness Ethereum (ETH) is facing renewed bearish pressure as it struggles to maintain key resistance levels, sliding back towards the $3,100 mark after failing to hold above $3,300. This latest pullback, coupled with critical on-chain data, paints a cautious picture for the world's second-largest cryptocurrency, suggesting that recent consolidation may yet resolve to the downside without a resurgence in demand.
Institutional Demand Wanes
The market's struggle is exacerbated by a significant drop in the Coinbase Premium Gap, a metric often reflecting US institutional demand. Data from CryptoQuant reveals this gap has plunged into deeply negative territory, reaching its lowest point in nearly a year. A negative premium indicates that buying interest from US-based investors is lagging behind global activity, suggesting either a pause in accumulation or active distribution. Historically, sustained ETH rallies have been underpinned by a positive Coinbase Premium, making the current trend a notable headwind for bulls. Until this gap shifts back into positive territory, Ethereum's upward trajectory appears constrained.
Technical Hurdles and Key Levels to Watch
From a technical standpoint, Ethereum's price action remains fragile. It trades below critical moving averages, with the 50-day moving average currently sloping downwards and acting as overhead resistance. This, combined with the 100-day and 200-day moving averages positioned higher, establishes a substantial supply zone between $3,300 and $3,600. Repeated attempts to rally into this region have been met with selling pressure, confirming a persistent distribution trend and maintaining a sequence of lower highs since the October peak near $4,700. For any credible bullish resurgence, ETH must decisively reclaim the $3,300 level with strong conviction. Conversely, a sustained break below the crucial $2,900-$3,000 support range could trigger a deeper retracement towards the mid-$2,600s, urging caution among investors.
