The rise in the Coinbase Premium Gap indicates a potential price increase for Ethereum (ETH). However, it is uncertain if ETH will reach $4,000. Recent data from CryptoQuant shows that there has been significant buying activity of ETH by crypto investors, as seen through the Coinbase Premium Gap metric.
This metric measures the difference in ETH prices between Coinbase and Binance. A decrease in the gap signifies that American investors are selling ETH or holding back on buying. Conversely, a high value like the recent spike to 0.78 suggests strong buying pressure from the U.S.
Increased exposure to Ethereum could be linked to the upcoming Ethereum ETF launch. This heightened interest in altcoins has the potential to drive up their prices. For instance, in March 2023, the Coinbase Premium Gap hit a low point, causing ETH’s price to drop below $1,400. However, in March 2024, the metric reached a peak, leading to ETH hitting $4,065.
Currently, ETH’s market value stands at $3,194, marking a 34.70% decrease from its all-time high. If buying pressure continues to rise in the U.S. and globally, ETH’s price could recover some of this decline. Data from IntoTheBlock indicates that if accumulation of ETH intensifies, the cryptocurrency could retest $3,437, despite neutral sentiment.
The IOMAP metric tracks addresses that are in and out of money around a certain price range, identifying potential support and resistance levels. With millions of Ethereum addresses in the money, there is a possibility that ETH could break the resistance at $3,242 and reach $3,347.
The Ethereum Fear and Greed Index currently sits at 39, indicating a balanced sentiment between fear and greed. This index can help investors determine the best time to buy ETH. Overall, the positive outlook for ETH’s price increase could be impacted by a decrease in overall interest in the cryptocurrency.