Ethereum saw a sharp breakdown below the $2,800 level before quickly bouncing 
and attempting to reclaim $2,900, but the recovery still looks fragile. The 
sudden dip exposed how thin demand has become at key support zones, and while 
buyers are trying to stabilize the price, momentum remains weak. With 
volatility rising and sentiment turning defensive, Ethereum is entering a 
pivotal stretch where the next few weeks could define the broader trend for 
2026. Bulls need to reclaim lost ground quickly, but repeated failures to hold 
higher levels suggest the market is still vulnerable to deeper downside if 
support breaks again. Related Reading: Bitcoin Indicator Falls Back To Post- 
Bear Market Levels: Investors Approach A Key Decision Point Adding to the 
pressure, a key US institutional demand proxy is flashing a warning sign. The 
30-day simple moving average (SMA30) of the Ethereum Coinbase Premium Index 
has dropped to −0.08, reaching its lowest level since early 2023. This index 
tracks the pricing gap between Ethereum’s USD pair on Coinbase and the USDT 
pair on Binance, and deep negative readings typically indicate ETH is trading 
at a discount on Coinbase—often interpreted as weaker demand from US-based 
institutional buyers. This divergence matters because positive Coinbase 
premiums historically support sustained upside trends in Ethereum. With that 
premium now at a multi-year low, ETH’s attempt to recover above $2,900 is 
happening without strong confirmation from US “smart money,” increasing 
uncertainty around the next move. Coinbase Premium Hits Multi-Year Low A 
CryptoQuant report highlights a key warning signal for Ethereum: the Coinbase 
Premium Index, which measures the price gap between ETH/USD on Coinbase and 
ETH/USDT on Binance. Because Coinbase is widely viewed as a proxy for US 
institutional activity, a deeply negative premium typically indicates ETH is 
trading at a discount where “smart money” is most active, while Binance—often 
driven by global retail and whale flow—holds relatively stronger pricing. In 
practical terms, this spread helps reveal where demand is coming from and 
whether capital flows are supportive of a sustained trend. The current 
downside in the premium suggests a clear lack of buying pressure from US 
institutions. Even if global markets on Binance are stabilizing Ethereum’s 
price in the short term, the absence of American demand creates a bearish 
divergence. This matters because positive premiums underpin major ETH rallies; 
they signal the US-based accumulation and deep spot demand that drive price 
extensions. Without that backing, rallies are more likely to fade, and 
rebounds can become vulnerable to renewed selling pressure. The report flags 
this historic premium low as a warning: despite global resilience, the market 
lacks the US momentum that typically fuels a strong, immediate reversal. For 
bulls, the priority is not only reclaiming key price levels, but also seeing 
confirmation through premium recovery. Related Reading: Bitcoin Stuck In Bear 
Mode For 83 Days: Trend Pulse Confirms Structural Weakness Ethereum Attempts 
To Stabilize After Sharp Breakdown Ethereum is trading near $2,897 after a 
sharp breakdown below $2,800 that quickly reversed, allowing price to rebound 
back toward the $2,900 area. While the bounce suggests buyers are still 
defending the lower end of the current range, the overall structure remains 
weak. ETH has been trending lower from its late-2025 highs, and recent 
recovery attempts continue to fade before triggering a sustained reversal. 
Technically, Ethereum is still trading below its key trend averages, which 
keeps pressure on bulls. The 50-period moving average (blue) is positioned 
above the price and is beginning to roll over, signaling weakening short-term 
momentum. Related Reading: XRP Distribution Phase Continues, But Funding Rates 
Suggest Shorts Are Overextended The 100-period moving average (green) is also 
above current levels and sloping downward. This reinforces that traders are 
selling into rallies rather than following them with fresh demand. Together, 
these moving average bands have become a clear resistance zone that ETH must 
reclaim to shift the trend back in favor of buyers. At the same time, the 
200-period moving average (red) remains below the price and continues to rise 
gradually, acting as a long-term structural support reference. As long as ETH 
holds above this curve, the move looks more like a corrective phase than a 
full macro breakdown. For bulls, the immediate objective is reclaiming $3,000, 
then pushing toward $3,150–$3,250 to challenge the 50/100 MA zone. If ETH 
fails to stabilize, downside risk remains open toward $2,750–$2,800. Featured 
image from ChatGPT, chart from TradingView.com

US Institutions Step Back From Ethereum: Coinbase Premium Flashes Caution

Silver is now outperforming Bitcoin by one of its widest margins on record, 
underscoring how decisively investors are favoring hard assets as volatility 
reshapes global markets.

Silver is crushing crypto as ‘digital gold’ narrative unravels

Ripple is pushing deeper into Saudi Arabia, teaming up with Riyad Bank’s 
innovation arm to advance blockchain adoption across payments, custody and 
tokenization as the Kingdom accelerates its Vision 2030 financial 
modernization drive. Ripple Ignites Saudi Fintech Ambitions Through Riyad Bank 
Innovation Alliance Ripple is partnering with Jeel, the innovation arm of 
Riyad Bank, to […]

Ripple Secures Strategic Saudi Banking Partnership as Vision 2030 Fuels Fintech Boom

Bitcoin has fallen nearly 30% since a major market crash in October, while 
gold and silver have soared to new highs.

Stablecoin market fall shows flight to gold, not Bitcoin: Santiment

World Liberty Financial (WLFI), a crypto project backed by US President Donald 
Trump, moved a chunk of its Bitcoin exposure into Ethereum this week. Reports 
say the group sold wrapped Bitcoin holdings and picked up a large amount of 
Ether in the same set of transactions. Related Reading: Money Keeps Leaving: 
Bitcoin ETFs Shed $1.72 Billion In Just 5 Sessions WLFI Moves From WBTC To ETH 
According to blockchain trackers, about 93.77 WBTC was sold, which worked out 
to roughly $8 million at the time of the swap. The proceeds were used to buy 
around 2,868 ETH, with an average price of about $2,813 per unit. The trade 
was executed from a wallet that on-chain analysts link to WLFI’s treasury. 
That wallet activity was visible on public ledgers and has been shared across 
several crypto news sites and data monitors. Onchain Data And Market Context 
Prices were modestly lower for ETH when the purchase happened, which some 
traders see as a buying chance. Reports say this move comes as Ethereum 
trading ranges have made some holders rethink where to park large sums. The 
World Liberty Finance (@worldlibertyfi) has sold 93.77 $WBTC ($8.07M) for 
2,868.4 $ETH at a price of $2,813. Address: 
0xee7f7f53f0d0c8c56a38e97c5a58e4d321a174dc Data @nansen_ai 
pic.twitter.com/yhh7IvYLLz — Onchain Lens (@OnchainLens) January 26, 2026 WBTC 
is a tokenized form of Bitcoin that inhabits the Ethereum chain, so swapping 
it for native ETH changes how those funds can be used within decentralized 
finance. The funds were moved through a public wallet tied to WLFI. This was 
confirmed by on-chain evidence that was circulated by data platforms. 
Strategic Reasons Behind The Shift Several reasons could explain the swap. 
Holding ETH gives direct access to smart contracts, staking, and DeFi tools 
that WBTC cannot offer on its own. Some market watchers think WLFI may be 
positioning to use ETH for on-chain services, staking, or profit from future 
network activity. Others suggest it could be a way to rebalance risk between 
stores of value and utility tokens. Reports say no single motive can be proved 
from the chain itself, only the movement of funds. Reaction And Broader 
Signals Traders reacted with curiosity rather than panic. Prices barely moved 
on the news, showing the market may have already priced in similar flows. 
Smaller investors watched closely because such a swap by a high-profile, 
politically linked project draws attention. The wallet activity was tracked 
publicly, and analysts noted the timing matched a period of calmer ETH price 
action. Related Reading: XRP Charts Flash Familiar Signal As Analyst Calls For 
$11, Then $70 What This Could Mean For Investors Reports note that big 
reallocations like this can change short-term sentiment, though they do not 
always lead to lasting rallies. For holders who prefer simplicity, swapping 
WBTC for ETH changes the way capital can be used, moving from a Bitcoin peg to 
native network participation. Featured image from Unsplash, chart from 
TradingView

Cryptocurrency price in LKR