Ethereum Nears All-Time High as Fund Market Premium Peaks 🚀
Ethereum is trading above $3800, facing some selling pressure in the past 48 hours. CryptoQuant data shows Ethereum’s Fund Market Premium is at its highest since November 2021. This metric measures the difference between Ethereum's spot price and the price of funds or trusts based on ETH. A rise in this metric means higher demand for Ethereum within investment funds.
The increase began in early May, but most of the recovery happened after the SEC approved eight spot ETH ETF applications on May 23. As of now, the Fund Market Premium stands at -0.81. The last time it was this high was on November 10, 2021, right before Ethereum hit its all-time high of $4,891 on November 16.
Coinbase Feels the Shift
The Coinbase Premium Index (CPI), which tracks ETH's price difference on Coinbase and Binance, is now negative at -0.08. This suggests U.S. investors prefer ETH investment funds over direct purchases on Coinbase. The Coinbase Premium Gap (CPG) for ETH is also negative, meaning ETH trades lower on Coinbase compared to other major exchanges.
Key Indicators
Recent data shows strong accumulation activity for ETH. The Relative Strength Index (RSI) is at 70.17, and the Money Flow Index (MFI) stands at 74.41. However, with these levels, buyers might be nearing exhaustion, suggesting a possible minor price correction soon.
Stay tuned for more crypto insights! 👍
Disclaimer: This is not financial advice. Investing in cryptocurrency involves risk. Always do your own research before investing.
