- After a steady recent decline, the number of active Ethereum addresses spiked across the board
- This correlated with surge in U.S investor buying, as well as a hike in overall market buying volume
Ethereum, at the time of writing, seemed to be picking up the pace to regain strength across the market. It’s still early days though, with the altcoin recording very minor gains of 1.2% to trade at $2,712 at press time. In fact, to enter a bullish phase, ETH must recover beyond its 15.81% drawdown on the charts.
There are some positive signs though. Especially since a combination of multiple market metrics hinted at the notion that the world’s largest altcoin could soon trend higher.
Buying action could be linked to U.S investors
The number of active addresses on the Ethereum network has surged to 376,653 in the last 24 hours alone. The aforementioned hike reversed the decline that began on 10 February, when active addresses were as high as 431,000.
Active addresses represent the number of unique addresses that sent or received ETH within a specific time window. However, as a standalone metric, it does not determine a bullish or bearish trend and requires correlation with other key indicators, such as transfer volume.
Source: CryptoQuant
In the last 24 hours, for instance, transfer volume climbed by 120.53% from its previous low. According to CryptoQuant, a total of approximately 1.73 million ETH was transferred, up from a low of 1.68 million on 13 February.
AMBCrypto found that this predominantly buying activity could be linked to U.S investors. In fact, the Coinbase Premium Index, which tracks U.S retail investors’ trading action compared to the broader market, registered its own uptrend.
In the derivatives market, the proportion of buying volume relative to selling volume has remained high too.
The Taker Buy-Sell Ratio, which measures the relative strength of buyers versus sellers, usually alludes to bullish sentiment when above 1 and bearish sentiment when below 1. At the time of writing, the ratio had a value of 1.07, with an uptrend suggesting that buying activity may continue to climb.
Source: Cryptoquant
Sellers still loom
Now, while the market may be leaning bullish, the Fund Market Premium (A metric which measures buying or selling pressure using NAV and market price), flashed bearish signs.
When the fund market rate drops below 0 and trends south, it alludes to a hike in selling pressure. At press time, the rate stood at -0.9, indicating that some sellers remain active across the market.
Source: Cryptoquant
If this metric shifts, Ethereum [ETH] could see a clear path to rally with no hindrance.
