The popular cryptocurrency Ethereum has seen a significant increase of more than 40% in the last week, driven by positive sentiment in the overall cryptocurrency market. Currently, Ethereum is trading comfortably above the key price level of $2,500.

However, there are concerns that this upward trend may be losing momentum as investors in the United States are selling off their holdings. The impact of this development on Ethereum’s price performance in the short term is uncertain.

Data from CryptoQuant shows that Ethereum’s Coinbase Premium Index (CPI) peaked at 0.022 on May 10 but has since been gradually declining, now standing at 0.0063. Despite Ethereum's price rising by 5% during this period, the decreasing CPI indicates that US investors are increasing selling pressure, which could put downward pressure on the altcoin's price.

The CPI measures the difference in Ethereum's prices on Coinbase and Binance, serving as an important metric to gauge US investor sentiment. An increasing CPI suggests stronger buying interest from US investors, while a decreasing or negative CPI indicates reduced demand on Coinbase, potentially due to profit-taking or reduced interest from US buyers.

Furthermore, the Price-to-Daily Active Addresses (DAA) divergence for Ethereum, which assesses price movement against network activity, has been negative recently, currently sitting at -58.2%. This suggests that despite Ethereum's price increase, the level of user engagement does not support the rally, indicating a potential pullback in the near future.

Ethereum is currently trading at $2,598, just below the resistance level at $2,725. With US investors cashing out, there is increasing downward pressure on Ethereum, which could drive its price down to $2,424. If this support level is breached, the price may drop further to $2,243.

On the other hand, if bullish momentum strengthens, Ethereum could attempt to reclaim the $2,745 level. The future price movement of Ethereum will depend on whether the selling pressure from US investors continues or if buying interest picks up to support further gains.