The buying interest from the U.S. market highlights a possible price move similar to the highs in March.
- The increase in the Coinbase Premium Gap suggests a price increase for ETH. However, ETH might not reach $4,000.
According to data from CryptoQuant, crypto investors have been buying Ethereum [ETH] in large numbers. This was evident from the trend of the Coinbase Premium Gap.
This metric measures the difference between the ETH price on Coinbase and that of Binance. When it decreases, it means that investors from America are selling ETH or refraining from buying.
Americans now trust in the altcoins
But high values, like its recent rise to 0.78 suggest strong buying pressure from the U.S. As per AMBCrypto’s findings, increased exposure to Ethereum might be connected to the imminent Ethereum ETF launch.
But apart from that, it provides the altcoin price with a higher chance of increasing. For example, in March 2023, the Coinbase Premium Gap dropped to one of its lowest point ever.
Source: CryptoQuant
This led ETH price to drop below $1,400. Fast forward to March 2024, the same metric hit a high point. At that time, ETH jumped to $4,065.
At press time, the market value of ETH was $3,194. This was a 34.70% decrease from its all-time high. However, if buying pressure continues to improve in the U.S. and other regions globally, we could see the price erase some parts of this drawdown.
Furthermore, data tracked by IntoTheBlock gives context of price Ethereum can reach should accumulation intensify. The specific metric AMBCrypto looked at was the IOMAP.
ETH set to retest $3,437 despite neutral sentiment
IOMAP stands for In/Out of Money around Price. In addition, this indicator spots buying and selling zones that are supposed to act as support or resistance.
It classifies addresses based on those making money, at breakeven point, and those out of money.
The larger the cluster of addresses at a price range, the stronger the support or resistance it offers. As of this writing, 3.56 million Ethereum addresses were in the money and purchased 2.47 million ETH at an average price of $3,140.
To the right, 2.02 million addresses bought 4.01 million ETH around $3,242, and are out of the money. Considering the larger addresses in the money, there is a chance ETH might break the resistance at $3,242.
Source: IntoTheBlock
If this is the case, the next area for the cryptocurrency to reach could be $3,347. AMBCrypto checked the Ethereum Fear and Greed Index to see if it could be a good time to buy ETH.
Further, this index ranges from o to 100. Values close to 0 indicates fear and those close to 100 indicates greed. As of this writing, the index was 39, meaning that there was neither extreme fear nor greed.
Source: X
However, the reading provides an opportunity to purchase the altcoin especially as the ETF launch is seemingly a bullish event.
While the price of ETH seems in line to increase, a decrease in overall interest could invalidate the prediction.
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