Ethereum
US Buys on Coinbase Fuel Ethereum Rally: CryptoQuant
US Buys on Coinbase Fuel Ethereum Rally: CryptoQuant
Ethereum (ETH) saw its price increase 11% last week, mainly due to buying pressure in the United States, according to data from CryptoQuant, a company that tracks activity on cryptocurrency exchanges.
The data reveals a significant increase in demand for ETH from Coinbase, a regulated exchange in the United States. This rise is reflected in the “Coinbase premium,” which measures the price difference between ETH/USD pairs on Coinbase and Binance, a popular global exchange.
Coinbase’s growing premium suggests that Ethereum’s upward trend may continue in the coming weeks. This indicator has previously signaled price increases in the past, and its current rise points to further potential growth.
The US buying frenzy on Coinbase could be attributed to two factors. First, experienced traders have been accumulating ETH since January, suggesting confidence in the asset’s long-term potential. Second, anticipation surrounding the potential approval of an Ethereum spot ETF in the United States could fuel investor interest. Currently, several large investment companies have filed applications to launch such ETFs.
Although the prospect of an ETF could lead to sustained growth for Ethereum, some traders believe it may not trigger explosive price increases. Currently, Ethereum is the second largest cryptocurrency by market value, and an ETF could potentially attract more institutional investors, leading to a more stable growth pattern rather than sudden spikes.