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Ethereum Struggles for Momentum as Coinbase Demand Lags Behind

Recent data highlights a concerning trend for Ethereum as its Coinbase Premium Index remains in negative territory, even with a price rebound above $2,100.

This index reflects the price difference between Ethereum on Coinbase compared to Binance, indicating higher selling pressure on Coinbase.

Despite the rebound, the lack of strong demand from U.S. investors on Coinbase raises questions about the sustainability of Ethereum's current price movements.

The Coinbase Premium Index at -0.0149 shows that ETH is trading lower on Coinbase than on Binance, emphasizing weaker demand from American traders.

As geopolitical tensions influence market volatility, Ethereum's attempt to reclaim the $2,200 level faces significant hurdles due to this divergence in buying pressure.

Historically, such negative premium readings suggest either rising selling pressure or a faltering demand among U.S. investors, which stifles price growth.

While the global crypto market remains active, the persistent negative reading on the index signals an imbalanced market structure lacking broad-based demand.

In the absence of renewed interest from U.S. institutional investors, Ethereum might struggle to maintain upward momentum.

For a sustained recovery, a shift toward a positive Coinbase Premium Index would indicate a return of U.S. buying activity, crucial for reinforcing price resilience.

As it stands, with Ethereum consolidating between $2,150 and $2,200, the outlook remains cautious until clear demand signals emerge from American markets.