Key Points
- Ethereum’s Coinbase Premium Index (CPI) has shown a decrease, indicating less buying activity among U.S. investors.
- The altcoin’s price is also falling, with a 4% decrease observed over the past week.
Ethereum’s [ETH] price has been on a downward trend since it briefly reached above $4000 on March 11. This decline has also led to a drop in its Coinbase Premium Index (CPI), as per data from CryptoQuant.
Understanding the Coinbase Premium Index
The CPI is a metric that compares the price of an asset on Coinbase and Binance. A rising value indicates increased buying activity by U.S. investors on Coinbase. Conversely, a drop or negative value suggests reduced trading activity on the U.S.-based exchange.
As of now, Ethereum’s CPI stands at -0.008. This negative value came about when the altcoin’s price fell below $3200 on March 18, causing the CPI to hit a 30-day low of -0.1. The CPI has been decreasing over the past few weeks after reaching a 12-month high in early March.
Other Market Indicators
Despite the price pullback of Ethereum in recent weeks, its Korean Premium Index (KPI) remains positive. Currently, Ethereum’s KPI is at 6.83.
An examination of Ethereum’s price performance on a daily chart suggests the possibility of further decline in the altcoin’s value this week. At the moment, Ethereum is trading at $3,474, marking a 4% price drop over the last week.
Ethereum’s Money Flow Index (MFI), which measures the strength of money flowing into and out of an asset, is at a low of 39.34. This low value indicates a decrease in buying pressure for the coin.
The coin’s Relative Strength Index (RSI) is also on a downward trend, currently returning a value of 49. This suggests that selling activity is surpassing coin accumulation among spot market participants.
The Parabolic SAR, an indicator that tracks potential trend direction and reversals, has shown a bearish sentiment since March 15. It has been positioned above Ethereum’s price for the past 10 days, during which the coin’s value has decreased by 6%.
