{"id":13608,"date":"2025-07-31T11:08:46","date_gmt":"2025-07-31T10:08:46","guid":{"rendered":"https:\/\/investx.fr\/en\/?p=13608"},"modified":"2025-07-31T11:08:48","modified_gmt":"2025-07-31T10:08:48","slug":"ethereum-volatility-major-correction-ahead","status":"publish","type":"post","link":"https:\/\/investx.fr\/en\/crypto-news\/ethereum-volatility-major-correction-ahead\/","title":{"rendered":"Ethereum Faces Major Volatility : Is a Big Correction on the Horizon ?"},"content":{"rendered":"\n

The Coinbase Premium Index, a Warning Signal<\/h2>\n\n\n\n

One of the most revealing indicators<\/strong> is the Coinbase Premium Index. This tool measures the price gap between Ethereum<\/a> on Coinbase and other global exchanges. Historically, a positive index<\/strong> indicates strong buying activity<\/strong> from American institutions. However, it has just plunged<\/strong> to -0.01<\/strong>, its lowest level<\/strong> since May<\/strong>.<\/p>\n\n\n\n

This reversal<\/strong> of the premium, while the overall market remains dynamic, suggests a potential<\/strong> gap in demand from major American players<\/strong>. Without these powerful institutional buyers, the foundation of ETH’s<\/a> rally<\/strong> could weaken<\/strong>, making the bullish movement<\/strong> more vulnerable to a reversal<\/strong>.<\/p>\n\n\n\n

\"Ethereum
Source: CryptoQuant<\/figcaption><\/figure>\n\n\n\n

Mixed Technical Indicators<\/h2>\n\n\n\n

Technical analysis adds another layer of concern<\/strong> to this picture. The Chaikin Money Flow (CMF), which measures incoming and outgoing money flows, shows a bearish divergence<\/strong> despite rising prices<\/strong>. This suggests a weakening<\/strong> of buying pressure, with fewer dollars flowing into the asset, despite the appearance of intact momentum.<\/p>\n\n\n\n

Conversely, the On-Balance Volume (OBV), which gauges the underlying real demand, follows the bullish price trend<\/strong>. However, this indicator<\/strong> could mislead retail traders, giving them the impression that the momentum<\/strong> is stronger<\/strong> than it actually is.<\/p>\n\n\n\n

\"CMF
Source: TradingView<\/figcaption><\/figure>\n\n\n\n

ETH : A Fragile Rising Wedge Structure<\/h2>\n\n\n\n

Finally, Ethereum’s price action itself raises concerns. The asset is evolving within a rising wedge, a pattern often considered bearish<\/strong> as it indicates a slowdown<\/strong> in bullish momentum<\/strong>. This fragile structure<\/strong> suggests the risk of another false bullish<\/strong> breakout, potentially trapping late buyers.<\/p>\n\n\n\n

For this bearish scenario to be invalidated, Ethereum’s<\/a> price will need to break and hold above $4,024<\/strong>, a key resistance level<\/strong>. Otherwise, Ethereum could retest support at $3,510<\/strong>.<\/p>\n\n\n\n

On-chain and technical signals suggest that Ethereum’s current rally might rest on more fragile foundations<\/strong> than it appears. The decrease in American institutional demand, combined with mixed technical indicators<\/strong>, points to an increased risk of a trend reversal<\/strong> in the short term<\/strong>. Investors would be well advised to remain vigilant<\/strong> against a potential bull trap.<\/p>\n\n\n\n

\"Ethereum
Source: TradingView<\/figcaption><\/figure>\n\n\n\n
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Buy ETH on Bitget now !<\/a><\/div>\n<\/div>\n\n\n\n

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