Speculations surrounding the potential introduction of exclusive exchange-traded funds for Ethereum have played a significant role in the recent uptick in its value. According to CryptoQuant, a company specializing in on-chain analytics, along with positive signals regarding ETFs, substantial spot purchases on Coinbase have also contributed significantly to the surge in ETH. The analytics platform recently shared valuable insights into the sudden rise of this popular cryptocurrency.
The surge in the price of ETH can be attributed to the anticipation of an Ethereum ETF approval as well as the notable increase in spot buying activity on Coinbase. CryptoQuant highlighted the rise in deposit transfers to Coinbase just before the surge in ETH’s value, indicating a growing demand for spot purchases. This uptick has led to increased cross-exchange and internal transactions in the market.
Additionally, CryptoQuant pointed out a brief spike in the Coinbase Premium Index, reaching 0.15, which suggests a heightened demand for ETH on the platform. The trading volume on Coinbase has also seen a significant increase, with the spot trading volume of ETH soaring from 127.2 million to 1.1 billion, representing a remarkable 9-fold increase from the previous day. The trading volume share of Ethereum on Coinbase has also played a crucial role in this surge. Currently, ETH’s price has surged by 22% in the last 24 hours, reaching just under $3,800 after surpassing $3,850.
Furthermore, the trading volume share of ETH on Coinbase has seen a substantial increase, from 5.83% to nearly 11.36%, showcasing a 5.53% rise compared to the previous day on major exchanges. Monitoring changes in the ETHE premium is also essential to understand shifts in institutional demand, potentially signaling the approval of an Ethereum ETF.