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This week, interest in Ethereum has stirred among U.S. investors, causing its prices to briefly rise to $2,110 before encountering downward pressure. Notably, the Coinbase Premium Index, which gauges U.S. investor sentiment by contrasting the price of the ETH/USD pair on Coinbase with the ETH/USDT pair on Binance, has flipped positive. This positive shift marks the highest level the index has reached since mid-December, suggesting that U.S. traders who had previously remained on the sidelines are beginning to engage with the market once again.

The index's 7-day moving average (7DMA) is also on the rise, although it still remains below its neutral threshold. Historically, a positive shift in this index has often correlated with upward price movements for Ethereum, indicating that increasing confidence among U.S. investors may signal potential price recovery.

In another significant development, U.S. spot-listed Ethereum ETFs have recorded three consecutive days of net inflows for the first time since mid-January. On Wednesday alone, these products attracted $157.1 million, though the momentum slowed to $6.5 million on Thursday. While these inflows indicate a cautious resurgence of interest, it is in stark contrast to the substantial outflows experienced since October, where ETH ETFs have faced a staggering $3.3 billion in withdrawals, predominantly driven by hedge fund selling as market conditions shifted.

On the derivatives side, Ethereum's open interest rose by 500,000 ETH, reaching 12.70 million ETH this week. This marks its highest level for the month. However, despite these fluctuations, the market is still grappling with uncertainty, as funding rates continue to show both positive and negative signs, indicating that a clear market direction has yet to be established.

Ethereum Price Forecast: Challenges Ahead

Recent data from Coinglass reveals that Ethereum has seen $81.4 million in liquidations within a 24-hour span, with long positions accounting for $65.5 million of that total. On the daily chart, Ethereum is currently trading below the 20-day Exponential Moving Average (EMA) near $2,045, which indicates a broader bearish structure despite the recent uptick from last week's lows. The Relative Strength Index (RSI) has slipped back toward 39 after a brief recovery from oversold conditions, suggesting a decline in downside momentum but not yet signaling a shift toward bullish sentiment. Additionally, the Stochastic Oscillator has declined from overbought levels observed earlier in the week, reinforcing the notion that the recent rebound is merely corrective in a prevailing downtrend.

Immediate resistance for Ethereum is observed at $2,108, where the 20-day EMA aligns with a horizontal cap, followed by additional resistance levels at $2,389 and $2,746. A daily close above $2,108 would be necessary to weaken the current bearish outlook and pave the way toward higher resistance levels. Conversely, initial support is identified at $1,741, with further support thresholds at $1,524 and a more distant level at $1,405. Until Ethereum breaks above the $2,108 mark, any rallies are likely to encounter selling pressure and risk a retreat to lower support levels.

On a broader scale, the weekly chart maintains a bearish bias, as Ethereum hovers below the 20-week EMA, which is rolling over above $2,800, confirming a continuing downtrend from previous highs near $4,700.

Currently, Ethereum is trading around $1,920, reflecting a decline of over 5% in the past 24 hours. As the cryptocurrency market continues to navigate these shifts, the evolving dynamics of investor sentiment and market movements will be crucial for both short-term traders and long-term holders alike.

(The technical analysis in this report was assisted by an AI tool.)