Ethereum (ETH) has seen its price rise by 11% in the past week, driven primarily by buying pressure in the United States, according to data from CryptoQuant, a firm that tracks activity on cryptocurrency exchanges.
The data reveals a significant increase in demand for ETH from Coinbase, a US-regulated exchange. This surge is reflected in the “Coinbase premium,” which measures the price difference between ETH/USD pairs on Coinbase and Binance, a popular global exchange.
The rising Coinbase premium suggests that the upward trend for Ethereum may continue in the coming weeks. This indicator previously signaled price surges in the past, and its current rise hints at potential further growth.
The U.S. buying spree on Coinbase could be attributed to two factors. Firstly, experienced traders have been accumulating ETH since January, suggesting confidence in the asset’s long-term potential. Secondly, anticipation surrounding the potential approval of a spot Ethereum ETF in the U.S. might be fueling investor interest. As of now, several major investment firms have filed applications for launching such ETFs.
While the prospect of an ETF could lead to sustained growth for Ethereum, some traders believe it might 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 steadier growth pattern rather than sudden spikes.
