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Ethereum Coinbase Premium and Short-Term Weakness Signals
Ethereum’s Coinbase Premium has recently spiked into positive territory, drawing attention from the market. However, despite this increase, Ethereum’s price has continued to decline. The Coinbase Premium measures the price difference between Coinbase and Binance. While a positive premium is often interpreted as stronger buying pressure on Coinbase, the current situation suggests otherwise: **the stronger factor is the selling pressure on Binance**, which has outweighed demand. In addition, Ethereum long liquidations have surged, marking the second-highest level in the past year. This indicates that many traders had positioned themselves with a bullish outlook. Yet, markets often move counter to investor sentiment, and this heavy liquidation event signals the potential for short-term weakness or continued correction in Ethereum’s price. That said, this assessment remains a **short-term perspective**. The cryptocurrency market is known for sudden reversals triggered by unexpected catalysts. Therefore, investors should remain cautious, avoiding both excessive optimism and undue pessimism, while continuing to track market flows closely. Ultimately, the broader outlook still underscores the importance of maintaining a balanced, medium- to long-term perspective.