Ethereum’s Increased Purchase Activity in the U.S Sparks Speculation of an Impending Price Surge
Currently, Ethereum appears to be gaining momentum in an effort to strengthen its position in the market. While it’s still early days, the altcoin has seen a slight increase of 1.2%, trading at $2,712 at the moment. To enter a bullish phase, ETH needs to recover from a 15.81% drawdown seen in recent times.
Despite the minor gains, there are positive indicators that suggest the world’s largest altcoin could trend upwards in the near future.
Rise in Buying Activity possibly Linked to U.S Investors
Over the past 24 hours, the number of active addresses on the Ethereum network has surged to 376,653. This reversal of a declining trend since February 10, when active addresses stood at 431,000, has caught the attention of many market participants.
Active addresses indicate unique addresses involved in sending or receiving ETH within a specific time frame. While this metric alone doesn’t determine market direction, it becomes more meaningful when correlated with other indicators like transfer volume.
In the last 24 hours, transfer volume has risen by 120.53% from its recent low. Data from CryptoQuant revealed a transfer of approximately 1.73 million ETH, up from 1.68 million on February 13.
Evidently, this surge in buying activity is thought to be driven by U.S investors. The Coinbase Premium Index, which monitors the trading behavior of U.S retail investors compared to the broader market, has shown an upward trend. Moreover, in the derivatives market, the proportion of buying volume remains notably high.
The Taker Buy-Sell Ratio, which gauges the strength of buyers versus sellers, can indicate bullish or bearish sentiment. Currently standing at 1.07, this ratio suggests an upward trajectory in buying activity.
Sellers Maintain Influence despite Bullish Sentiment
While the market sentiment leans towards bullish, the Fund Market Premium, a metric measuring buying or selling pressure using NAV and market price, has signaled bearish tendencies.
A decrease in the fund market rate below 0 indicates an increase in selling pressure. Presently at -0.9, this rate signifies the presence of active sellers in the market.
Should this metric change, Ethereum [ETH] may find a clear path to rally without any significant obstacles.