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Home Ethereum

Ethereum’s in demand – How U.S investors are having their say

March 8, 2024
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Ethereum’s in demand – How U.S investors are having their say
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  • ETH’s Coinbase Premium Index is at its highest in 12 months.
  • The coin’s Chaikin Money Flow suggests a steady supply of market liquidity. 

Ethereum’s [ETH] Coinbase Premium Index (CPI) has risen to its highest level since May 2023, signaling a recent spike in market participation by US-based investors, data from CryptoQuant showed.

Ethereum Coinbase Premium Index

Source: CryptoQuant

This metric tracks the difference between an asset’s prices on Coinbase and Binance. When it climbs, it suggests that Coinbase users are conducting significant buying activity. 

Conversely, when it declines and dips into the negative territory, it signals less trading activity on the US-based exchange.

At press time, ETH’s CPI was 0.16. Per CryptoQuant’s data, the last time the value was this high was on the 9th of May, 2023. This index initiated an uptrend since 23rd February, and has since risen by over 400%.

The jump in ETH’s CPI is directly tied to the coin’s recent rally above $3800. It is also indicative of the market’s general bullish sentiment and the expectation that the coin will reclaim its two-year-old all-time value of $4800. 

The same sentiment was observed in the Asian market. An assessment of ETH’s Korean Premium Index (KPI) showed that it was at its highest value since May 2022. 

The rallies noted in ETH’s CPI and KPI showed that investors from both regions engaged in trading the altcoin are at their most active for quite some time.

Demand remains at an ultra-high level

At press time, ETH exchanged hands at $3,890, witnessing a 3% price growth in the last 24 hours, per CoinMarketCap’s data. 

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Although the coin faces significant resistance at this price level, buying pressure continues to outpace coin sell-offs. An assessment of ETH’s key momentum indicators on a weekly chart confirmed this.

At press time, both its Relative Strength Index (RSI) and Money Flow Index (MFI) trended upward with respective values of 84.36 and 85.43. These values showed that buying pressure was significantly above selling activity.

Further, the rally in its Chaikin Money Flow (CMF) signaled the steady inflow of liquidity into ETH’s spot market. As of this writing, ETH’s CMF was 0.29. A positive CMF value is a sign of strength, suggesting that traders are bringing more capital into the market. 


Is your portfolio green? Check out the Ethereum Profit Calculator


Lastly, confirming this bullish trend, the coin’s positive directional index (green) rested solidly above its negative index.

When these lines of an asset’s Directional Movement Index (DMI) indicator are so positioned, it means that the buyers are in control of the market. 

ETH/USDT 1-Week Chart

Source: TradingView

Next: Shiba Inu’s price prediction – Here’s the bull case for SHIB

READ ALSO

Ethereum Looks Ready To Break Out Of 4-Year Consolidation, Analyst Says Price Will ‘Go Insane’

Binance loses 300K ETH – Here’s what it means for bulls eyeing $2.7K


  • ETH’s Coinbase Premium Index is at its highest in 12 months.
  • The coin’s Chaikin Money Flow suggests a steady supply of market liquidity. 

Ethereum’s [ETH] Coinbase Premium Index (CPI) has risen to its highest level since May 2023, signaling a recent spike in market participation by US-based investors, data from CryptoQuant showed.

Ethereum Coinbase Premium Index

Source: CryptoQuant

This metric tracks the difference between an asset’s prices on Coinbase and Binance. When it climbs, it suggests that Coinbase users are conducting significant buying activity. 

See also  Shattering All Barriers in Earning Passive Money – This Cloud Miner Is Outsmarting All Present Passive Income Streams, XRP, DOGE Investors Are stunned

Conversely, when it declines and dips into the negative territory, it signals less trading activity on the US-based exchange.

At press time, ETH’s CPI was 0.16. Per CryptoQuant’s data, the last time the value was this high was on the 9th of May, 2023. This index initiated an uptrend since 23rd February, and has since risen by over 400%.

The jump in ETH’s CPI is directly tied to the coin’s recent rally above $3800. It is also indicative of the market’s general bullish sentiment and the expectation that the coin will reclaim its two-year-old all-time value of $4800. 

The same sentiment was observed in the Asian market. An assessment of ETH’s Korean Premium Index (KPI) showed that it was at its highest value since May 2022. 

The rallies noted in ETH’s CPI and KPI showed that investors from both regions engaged in trading the altcoin are at their most active for quite some time.

Demand remains at an ultra-high level

At press time, ETH exchanged hands at $3,890, witnessing a 3% price growth in the last 24 hours, per CoinMarketCap’s data. 

Although the coin faces significant resistance at this price level, buying pressure continues to outpace coin sell-offs. An assessment of ETH’s key momentum indicators on a weekly chart confirmed this.

At press time, both its Relative Strength Index (RSI) and Money Flow Index (MFI) trended upward with respective values of 84.36 and 85.43. These values showed that buying pressure was significantly above selling activity.

Further, the rally in its Chaikin Money Flow (CMF) signaled the steady inflow of liquidity into ETH’s spot market. As of this writing, ETH’s CMF was 0.29. A positive CMF value is a sign of strength, suggesting that traders are bringing more capital into the market. 

See also  Analyst Identifies Pattern To Trigger Rally To ATH

Is your portfolio green? Check out the Ethereum Profit Calculator


Lastly, confirming this bullish trend, the coin’s positive directional index (green) rested solidly above its negative index.

When these lines of an asset’s Directional Movement Index (DMI) indicator are so positioned, it means that the buyers are in control of the market. 

ETH/USDT 1-Week Chart

Source: TradingView

Next: Shiba Inu’s price prediction – Here’s the bull case for SHIB
Tags: demandEthereumsInvestorsU.S

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