Key Points
- Ethereum’s Coinbase Premium Index (CPI) has hit a 12-month high, indicating increased US investor activity.
- The coin’s Chaikin Money Flow shows a consistent market liquidity supply.
Ethereum’s Coinbase Premium Index (CPI) has reached its highest point since May 2023, indicating a surge in market participation from US investors, according to data from CryptoQuant.
The CPI measures the price difference of an asset on Coinbase and Binance. A rise in the index suggests significant buying activity on Coinbase.
Ethereum’s CPI and Market Sentiment
As of now, the CPI of Ethereum is at 0.16. The last time the value was this high was on May 9, 2023. The index has been on an upward trend since February 23, and has risen by over 400%.
The surge in Ethereum’s CPI is linked to the recent rally of the coin, which exceeded $3800. This suggests a generally bullish market sentiment and expectations that the coin will reach its all-time high value of $4800 from two years ago.
A similar sentiment was observed in the Asian market. Ethereum’s Korean Premium Index (KPI) has reached its highest level since May 2022.
Market Indicators and Ethereum’s Price
At the moment, Ethereum is trading at $3,890, marking a 3% price increase in the last 24 hours. Despite significant resistance at this price point, the buying pressure is still outpacing the sell-offs.
Key momentum indicators on a weekly chart confirm this. Both its Relative Strength Index (RSI) and Money Flow Index (MFI) are trending upward, indicating that buying pressure is significantly higher than selling activity.
Furthermore, the rise in Ethereum’s Chaikin Money Flow (CMF) indicates a steady inflow of liquidity into the spot market. A positive CMF value suggests that traders are bringing more capital into the market.
Finally, the coin’s positive directional index is firmly above its negative index, confirming the bullish trend and suggesting that buyers are dominating the market.
