Ethereum Gains 6% but Coinbase Demand Lags

Despite a 6% price surge bringing Ethereum above $2,100, demand on Coinbase remains subdued. The Ethereum Coinbase Premium Index, which tracks the price disparity between Coinbase and Binance, has remained negative, highlighting persistent selling pressure on Coinbase. Recent data reveals that this index has dipped into the red zone, indicating that Coinbase users are selling at higher volumes compared to those on Binance. While the rebound may suggest that Binance investors played a role in the price increase, the ongoing low index value raises concerns about sustainability. Historically, when institutional investors using Coinbase withdraw their support, it can lead to significant downturns for Ethereum and other cryptocurrencies. Additionally, the overall health of Ethereum is reflected in its Market Value to Realized Value (MVRV) Ratio, which offers insights into investors' profit-loss situation; this metric recently indicated a state of loss, although a bounce back appears to be underway. As of now, Ethereum is trading at approximately $2,160, down 7% over the last week.