Ethereum Struggles to Break Through $3,300 Resistance as Coinbase Premium Reaches 10-Month Low

Ethereum's price is struggling to surpass the $3,300 mark, experiencing a modest decline while market concerns grow. Recent data shows a downturn in demand from U.S. traders, with the Coinbase Premium indicating reduced buying interest. Despite slight upward movement in trading volumes, the overall market sentiment remains cautious.

Key Takeaways

Ethereum's price is currently around $3,115, down 0.7% in the past day.
The Coinbase Premium Gap shows a significant decline, indicating softening demand from U.S. investors.
Trading volumes are mixed, with spot trading slightly up and derivatives showing a decline in open interest.
Ethereum appears to be in a corrective phase with a lack of momentum to break previous highs.

Chart showing Ethereum price consolidating

Main Content

Ethereum is facing challenges in its attempts to exceed the critical $3,300 resistance level, with trading activity stalling as U.S. demand cools off. As of the latest update, ETH is trading at approximately $3,115, reflecting a drop of 0.7% over the last 24 hours. Over the past week, the cryptocurrency has fluctuated between $3,008 and $3,293, ultimately closing the week with a 3% gain. However, it remains significantly below its peak from August 2025, which was near $4,946, placing current prices about 37% lower.

Trading conditions have also been relatively subdued. Spot trading volume saw a slight increase of 0.7%, edging up to $23 billion, suggesting diminishing interest from buyers. On the derivatives front, CoinGlass reported a 3.8% rise in volume to $73 billion, but open interest experienced a 1.4% decline, settling at $40 billion. Typically, when trading volume increases while open interest decreases, it implies that traders are either closing or shifting their positions instead of engaging in new leveraged trades.

Coinbase Premium Decline Deepens

On-chain analysis has reinforced this cautious sentiment. A report from CryptoQuant contributor CryptoOnchain dated January 8 highlights a deeper decline in Ethereum’s Coinbase Premium Gap, which has fallen into negative territory, registering a 14-day moving average of approximately −2.29, the lowest since early February 2025. This metric tracks the price difference between trades on Coinbase—a platform often linked to U.S. institutional activity—and Binance, which reflects a broader global trading context. A negative gap typically suggests weakening purchasing interest on Coinbase.

Historically, major upward movements in Ethereum's price have coincided with a positive Coinbase Premium Gap; however, that pattern has yet to re-emerge. ETF flows provide further evidence of hesitancy, as U.S. spot Ethereum ETFs recorded net outflows totaling $51.5 million on January 8, marking a second consecutive day of withdrawals that weigh on short-term sentiment.

Technical Analysis of Ethereum

Currently, Ethereum seems to be in a corrective phase, characterized by lower highs evident on the daily chart, which points to a lack of robust upward momentum. Previous recoveries have been brief, and the price remains below the 50-day moving average, which has consistently limited upward progress at around $3,260.

Ethereum daily chart. Credit: crypto.news

ETH is situated in the median range of the Bollinger Bands, consistently bouncing back from the upper band near the $3,300 resistance area. The band width has contracted slightly, often indicating a potential for a more considerable price movement, yet it does not provide clear directional cues.

Momentum indicators are currently stable, sitting at neutral levels. After recovering from an oversold state, the 14-day relative strength index is around 53 but lacks the strength observed during previous rallies. Additionally, recent green candles have been smaller, reflecting cautious and selective buying behavior.

A clear daily close above the $3,300 resistance could improve market confidence, shifting focus towards the $3,500–$3,600 range. Conversely, if this level continues to hold firm, the downside risk could revert to the $3,000–$3,050 area, with a deeper pullback targeting $2,800 should selling pressure intensify.