ETH’s Looming Crash? Bearish Alert Flashes as Buyers Battle Sellers in $2.7K Showdown

• Ethereum’s active addresses surged to 376,000 as U.S. buying volume spiked, signaling renewed retail interest amid a 1.2% price rise.
• Transfer volume jumped 120% in 24 hours, with 1.73M ETH moved, coinciding with Coinbase Premium Index’s bullish U.S. retail signal.

Ethereum recorded a rise in buying volume over the past week, with data pointing to increased participation from U.S. investors. The price rose 1.2% to $2,712, though it remains 15.8% below its recent high.

Source: Tradingview

Network activity showed a rebound, with active addresses climbing to 376,653 in 24 hours after a decline that began on February 10. ETHNews Analysts link this uptick to shifting investor behavior and broader market movements.

Source: CryptoQuant

Active addresses measure unique wallets sending or receiving ETH, serving as a gauge of network usage. While this metric alone does not predict price direction, its correlation with transfer volume offers clearer insights.

Ethereum’s transfer volume jumped 120.53% in 24 hours, reaching 1.73 million ETH compared to 1.68 million on February 13. This rise coincided with a spike in U.S. retail activity, tracked by the Coinbase Premium Index. The index, which compares U.S. trading patterns to global markets, trended upward, suggesting stronger buying pressure stateside.

The Taker Buy-Sell Ratio, reflecting buyer strength relative to sellers, held at 1.07. Values above 1 typically signal bullish momentum, and the ratio’s upward trajectory hinted at sustained demand. However, not all indicators aligned optimistically.

Source: CryptoQuant

The Fund Market Premium, which assesses buying or selling pressure by comparing asset prices to their net value, registered -0.9. Negative values often precede price corrections, indicating lingering selling activity despite recent gains.

ETHNews market analysts note that Ethereum’s recovery faces hurdles. Sellers remain active, as evidenced by exchange inflows and the Fund Market Premium’s bearish reading.

Additionally, macroeconomic factors like interest rate uncertainty and regulatory developments could dampen short-term momentum. Still, Ethereum’s network upgrades, including planned improvements to transaction efficiency, may bolster long-term confidence.

Source: CryptoQuant

The Coinbase Premium Index’s rise aligns with historical patterns where U.S. retail activity precedes broader market rallies. Similar trends occurred ahead of Ethereum’s 2023 rebound, though external variables like Bitcoin’s price swings often influence altcoin performance.

Bitcoin’s stabilization near $100,000 this week provided a calmer backdrop for Ethereum’s minor gains.

Source: Tradingview

The network’s transition to a deflationary model in 2022 reduced new ETH issuance, potentially tightening supply as demand grows.

Data from CryptoQuant shows exchange reserves declining since January, suggesting holders are moving ETH off platforms — a pattern sometimes linked to accumulation.