Ethereum rebounds after weekend dip | Credit: Hameem Sarwar
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Key Takeaways
Ethereum’s price rebounds to $4,200 after dipping below $3,500.
Coinbase Premium Gap surge signals strong U.S. institutional demand.
Exchange outflows show accumulation, reducing short-term sell pressure.
Over the weekend, Ethereum’s (ETH) price crashed below $3,500, sparking speculation that the bull cycle is over.
But two days later, that is no longer the case. Earlier today, Ethereum’s price briefly bounced to $4,200.
Although it has dropped below that threshold again, a closer look at the price action reveals that the short-term trend remains unclear.
Ethereum Stabilizes
According to CryptoQuant data, Ethereum saw a notable spike in the Coinbase Premium Gap after the price correction.
For context, this metric measures the percentage difference between ETH prices on Coinbase Pro and Binance.
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When the premium turns positive or climbs higher, it typically indicates intense buying pressure from U.S. investors.
Furthermore, this suggests increased demand from institutional or high-net-worth players trading via Coinbase.
On Sunday, Oct. 12, the Coinbase Premium Gap jumped to $0.17, marking one of the highest readings in weeks.
This spike indicates that American traders were paying more for ETH on Coinbase than global peers on Binance, reflecting growing confidence in Ethereum’s short-term outlook.
If the premium gap remains elevated, it could fuel upward price momentum. However, as of this writing, it has begun to narrow, hinting that Ethereum’s price could face consolidation in the short term.
Meanwhile, Ethereum’s Exchange Netflow Volume has dropped to -51,186 ETH, signaling that more coins are flowing out of exchanges than into them.
This negative reading typically reflects accumulation behavior, as investors move their ETH holdings from exchanges to self-custody wallets to hold them long-term.
In many cases, this trend reduces the immediate supply of available goods for sale and can strengthen bullish sentiment in the market.
When paired with the recent rise in the Coinbase Premium Gap, the outflows suggest that institutional and retail investors are accumulating ETH.
However, it remains unlikely that this will drive Ethereum’s price higher in the short term.
ETH Price Prediction: Mixed Signals
Examining the daily chart, CCN noted that Ethereum’s price is currently trading within a falling channel. This indicates a period of correction and consolidation.
However, ETH has recently bounced off the lower trendline, a signal that bearish dominance is weakening. In this case, buyers are regaining control.
If this momentum continues, ETH could climb toward the channel’s upper boundary, with the first resistance sitting around $4,196.
A successful breakout above that level would likely confirm a trend reversal, setting the stage for a potential rally toward its all-time high near $4,962.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
Victor Olanrewaju is a crypto analyst and reporter at CCN with deep roots in on-chain research and technical analysis. His crypto journey began in 2017, but it was the 2020 Uniswap airdrop that sparked a full-time pivot into the space.
With a foundation in copywriting, Victor honed his craft creating high-converting content for leading crypto brokers — most notably an XRP price prediction that ranked #1 on Google during the 2021 bull run.
He later joined AMBCrypto in 2022, where he combined storytelling with technical and on-chain analysis to cover key market narratives.
In 2024, he expanded his expertise at BeInCrypto, collaborating with analysts and using tools like Glassnode, Santiment, and IntoTheBlock to break down Bitcoin and altcoin trends.
At CCN, Victor covers the top cryptocurrencies, memecoins, macro shifts, blending real-time insights with deep-dive metrics.
He holds a Bachelor’s degree in Physics from the University of Ibadan, equipping him to simplify complex data for a wide audience. Follow his work or connect on LinkedIn or X.
