Strong Bearish Signal Halts Ethereum’s Climb to $3,300

The crypto market entered a correction on Wednesday January 7th after a brief but significant rally that lasted a few days. After hitting $3,301, Ethereum has corrected along with the rest of the market, but there’s more to its correction than meets the eye.

Crypto on-chain analytics firm CryptoQuant shared an analysis on X highlighting a major bearish signal hindering the reclaiming of the 2026 high. According to the platform, Coinbase Premium Gap has hit a 10-Month Low. This index shows the difference in prices of Ethereum on Coinbase and Binance, and also measures institutional demand from American investors compared to those from other parts of the world.

The sharp decline into negative territory indicates weakening demand from US institutional investors, which is a significant barrier to the asset reclaiming the $3,300 level. The metric has dropped to -2.285, the lowest level since early February 2025 and genuine demand must push it back to positive before the reclaim can be back in view.

Ethereum Faces More Uncertainty

Ethereum was one of the fastest rising assets during the recent rally, easily surging past $3,000 and establishing a spot above it. Apparently, there was a quick shift in sentiment and institutional demand suddenly dropped, leading to the 10-month low Coinbase Premium Gap. As sustainable Ethereum rallies in the past coincided with a positive Coinbase Premium, the drop means the asset could be facing more dangerous days ahead.

This change of sentiment is rather surprising considering Ethereum’s on-chain performance in the last few days. Ethereum ETF activity swelled to new levels, and analysts projected a 30% surge that should be happening around this time. With this rejection however, the asset is trading at just over $3,100 at the time of this report.

A similar pattern has been seen in Bitcoin which led the rally. After reclaiming $94K, the bears took over and the asset entered a correction. Currently trading at $89,000, a similar time of uncertainty may lie ahead of Bitcoin as analysts believe the rally has circled back to stocks and precious metals.

Ethereum on the Market Today

As the general crypto market is correcting, Ethereum has received its fair share of the losses. It has lost 2.89% in the last 24 hours but still retains some of its weekly gains. 

Unless the asset manages to hold the $3,000 level which is very critical, a crash below it could further deepen the fear and uncertainty around it in the coming days as the battle with the bears gets more fierce. 

ETH price today

More Must-reads:

• Ethereum Hits 2M Daily Transactions with Record Low Fees
• Ethereum Staking Hits a Six-Month Turning Point
• CNBC Calls XRP ‘Hottest Crypto Trade’ of the Year – X Users Disagree