Ethereum (ETH) broke below the crucial $2,100 price level after a fresh 8% decline amid a severe market correction. On-chain data now point to a major shift in sentiment among US investors. In fact, those market participants are aggressively de-risking the world’s largest altcoin, even pushing the Coinbase Premium to its most negative reading since July 2022. According to CryptoQuant, the Ethereum Coinbase Premium Index, measured on a 30-day moving average, has fallen to its lowest level since July 2022.
The index tracks the price difference between the ETH/USD pair on Coinbase Pro, which is widely used as a proxy for US institutional trading activity, and the ETH/USDT pair on Binance, often viewed as a proxy for global retail participation. CryptoQuant said that the deeply negative reading on the 30-day basis indicates that selling pressure is largely coming from US entities. While global retail traders may be holding positions or buying into the price decline, US institutions appear to be actively de-risking or exiting their Ethereum holdings. The analytics platform revealed that the last time the Coinbase Premium Index reached similarly negative levels was during the depths of the 2022 bear market.
Based on this comparison, it detailed two possible interpretations. One is that bearish momentum could continue, as US demand, described as an important driver of crypto market rallies, is currently absent, potentially limiting any near-term price recovery. The alternative interpretation presented is that such extreme negative premiums have historically aligned with capitulation phases, which can sometimes coincide with local market bottoms once aggressive selling pressure is exhausted. CryptoQuant concluded that the $2,100 level represents an important psychological and technical zone, and added that a reversal would likely require the Coinbase Premium to normalize or turn positive.
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