The Warning Signs Showing up on Coinbase for Ethereum Price – Explanation
Within the past month, Ethereum [ETH] has experienced a decrease of 12.44% in its value, as opposed to Bitcoin’s [BTC] decline of 4.74% at the current moment. ETH has been struggling to maintain crucial support levels in the last six weeks. Its connection to the $3k mark and nearby levels has led to numerous jokes being made at the expense of ETH holders and supporters.
Despite the pessimistic mood, the accumulation by whales has persisted. The recent $30 million withdrawal from Binance did not accurately represent the market sentiment. Rather, the price movements and other indicators exhibited more negative signals than positive ones.
X (formerly Twitter) crypto analyst Ali Martinez pointed out in a recent post that the growth of the network has been decelerating. The change in new addresses over the past week (7-day NA) was -9.32%, indicating a decrease in adoption and demand from newcomers to the network.
Conversely, the alteration in active addresses over the same period showed a 7.7% positive shift. This suggested fewer new users but increased trading and network activity throughout the week.
Reflecting on a broader timeframe, the Coinbase Premium has predominantly been negative over the past month. This metric measures the percentage discrepancy between Ethereum prices on Coinbase and Binance, offering insight into the behavior of investors based in the U.S.
The negative premium on Coinbase indicated heightened selling pressures and subdued buying interest from U.S.-based participants, accentuating their cautious stance toward ETH.
The price movements during the previous two months underscored a sense of caution and a willingness to divest ETH holdings. The consolidation phase in the first half of December was disrupted as BTC plunged from $108k to $92k. While BTC was priced at $96.5k currently, ETH exhibited lower lows and was valued slightly below $3.2k.
Furthermore, the On-Balance Volume (OBV) chart displayed a consistent selling pressure since December by registering a series of decreasing highs. Additionally, the Relative Strength Index (RSI) indicated the prevailing bearish momentum.
At present, regaining the $3.4k resistance level is crucial for swing traders to shift to a bullish stance.