news 
Coinbase Premium Flashes Warning Signs for Ethereum’s Price – Explained
In the current cryptocurrency market scenario, Ethereum’s (ETH) price has been experiencing significant declines in recent weeks. Despite this downward trend, it is essential to analyze the underlying metrics and indicators that can provide insights into the market sentiment and potential future price movements.
One such crucial metric that highlights the bearish bias is Coinbase Premium. This indicator measures the percentage difference between Ethereum prices on Coinbase and Binance. The negative premium observed on Coinbase implies a higher selling pressure and weak buying from U.S-based investors, indicating a cautious approach towards ETH investments.
The recent data suggests that the price action over the past two months has also highlighted caution and an eagerness to sell ETH. As seen in the chart, ETH formed lower lows as Bitcoin (BTC) crashed from $108k to $92k, while it is currently trading just under $3.2k.
Moreover, the OBV (On Balance Volume) indicator highlights the steady selling pressure since December by marking a series of lower highs. The RSI (Relative Strength Index) also indicates prevalent bearish momentum.
In light of these warning signs, it appears that the $3.4k resistance zone needs to be reclaimed before swing traders can consider adopting a bullish bias.
Source: ambcrypto.com
