Ethereum is in high demand – How US investors are having their say

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

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

Source: CryptoQuant

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

Conversely, when the price falls and enters negative territory, it indicates less trading activity on the US-based exchange.

At the time of writing, ETH’s CPI was 0.16. According to CryptoQuant data, the last time the value was this high was on May 9, 2023. This index started an upward trend since February 23 and has risen more than 400% since then.

The jump in ETH’s CPI is directly related to the coin’s recent rally above $3800. It is also indicative of the general bullish sentiment in the market and expectations that the coin will regain its two-year all-time value of $4,800.

The same sentiment was observed in the Asian market. A review of ETH’s Korean Premium Index (KPI) found it 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 have been the most active for quite some time.

Demand remains at ultra-high levels

At the time of writing, ETH was exchanging hands at $3,890, witnessing a 3% price growth in the past 24 hours, per CoinMarketCaps facts.

Although the coin faces significant resistance at this price level, buying pressure remains greater than the coin sell-off. A review of ETH’s key momentum indicators on a weekly chart confirmed this.

At the time of writing, both the Relative Strength Index (RSI) and the Money Flow Index (MFI) were on an upward trend with respective values of 84.36 and 85.43. These values showed that buying pressure was significantly greater than selling activity.

Furthermore, the Chaikin Money Flow (CMF) rally indicated the steady inflow of liquidity into ETH’s spot market. At the time of writing, ETH’s CMF was 0.29. A positive CMF value is a sign of strength, indicating traders are bringing more capital to the market.

Is your portfolio green? Check out the Ethereum profit calculator

Finally, the coin’s positive directional index (green) confirmed this bullish trend firmly above its negative index.

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