Altcoins News

Story: Ethereum Rally May Be a Bull Trap as U.S. Demand Weakens

By Maheen Hernandez

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Coinbase Premium Index Signals U.S. Buyer Retreat. A major red flag comes from the Coinbase Premium Index, which tracks the price difference of…

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CMF and OBV Show Diverging Momentum. Two key technical indicators—the Chaikin Money Flow (CMF) and On-Balance Volume (OBV)—are offering…

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Chart Patterns Suggest a Fragile Uptrend. From a technical analysis perspective, Ethereum’s price is currently forming a pattern known as an…

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Is This Just a Temporary Pause or a Trend Reversal?. While Ethereum's long-term outlook remains strong due to its wide use in DeFi, NFTs, and smart…

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Conclusion: Investors Should Be Cautious. Ethereum’s recent price movement might appear bullish on the surface, but a deeper look reveals…

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Ethereum (ETH) recently marked its 10th anniversary with a price surge that took it close to $3,900, rekindling hope for a climb toward the critical $4,000 level.

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Despite gaining over 50% in the last month, Ethereum is only 2% higher week-on-week, revealing signs of weakening momentum.

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A major red flag comes from the Coinbase Premium Index, which tracks the price difference of Ethereum on Coinbase versus other global exchanges.

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To put this into context, earlier this month, on July 10, the premium briefly turned negative to -0.0023, and the market hardly reacted.

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This drop suggests a cooling in U.S. demand, which is significant because institutional flows from the U.S. are typically a key driver in major crypto rallies.

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Two key technical indicators—the Chaikin Money Flow (CMF) and On-Balance Volume (OBV)—are offering mixed messages that point to fading momentum.

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The CMF, which measures the strength of money flowing into and out of the asset, has been making lower highs even as Ethereum’s price continued to rise.

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At the same time, the OBV, which tracks cumulative trading volume, has been rising steadily, following the uptrend in price.

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The combination of falling CMF and rising OBV can create the conditions for a bull trap—a scenario where volume appears healthy, but underlying buying power is drying up.

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From a technical analysis perspective, Ethereum’s price is currently forming a pattern known as an ascending wedge, a structure often considered bearish.

The Currency Analytics

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