$ETH

Ethereum Price at Risk of Crashing to $1,600

Ethereum (ETH) price continues to face significant pressure, dropping below $2,400 for the second time in three days.

While the broader market may be hoping that this latest drop represents a bottom, on-chain analysis suggests otherwise.

Investors Move Away from Ethereum

On August 24, the price of ETH surged to $2,800, sparking speculation that the cryptocurrency could test the $3,000 level. That has not happened, as Ethereum continues to trade lower. At press time, the Coinbase Premium Ethereum Index is down, suggesting that the price could undergo another significant decline.

The Coinbase Premium Index measures the difference between the spot price of ETH on Binance and that on Coinbase. High values ​​on this index indicate significant buying pressure in the United States. However, the low values ​​indicate that US investors are refraining from buying and are selling.

Based on CryptoQuant data, the indicator fell to -0.042, indicating a significant decrease in buying pressure from US investors.