Surge in New ETH Addresses Trade Signals Bullish Demand
The daily count of new addresses trading ETH has risen to its highest since November 2022, indicating a surge in demand for the leading altcoin. According to data from Santiment, on the 11th of January, a staggering 636,480 new addresses were created on the Ethereum network for trading purposes. This level of activity has not been seen in over a year, highlighting the growing interest in ETH among investors.
Bitcoin Spot ETF Approval Boosts ETH Price to 8-Month High
Coinciding with the surge in demand for ETH, the approval of the first-ever Bitcoin Spot ETF by the U.S. Securities and Exchange Commission on the 10th of January further boosted ETH’s price. On the 12th of January, the price of ETH rallied above $2700, reaching a high not seen since April 2022. This bullish sentiment was driven by the positive market reaction to the Bitcoin ETF approval, which had a spillover effect on other cryptocurrencies like ETH.
High Volatility and Narrow Price Range Challenge ETH Market
While ETH’s price reached an 8-month high, its subsequent movements have been characterized by significant volatility and a narrow price range. This volatility is evident in the widening gap between the upper and lower price bands on the ETH chart, indicating the coin’s susceptibility to price swings. Despite this, accumulation of ETH has continued to outpace sell-offs, with key momentum indicators pointing to overbought levels.
Accumulation Outpaces Sell-Offs as Bullish Sentiment Persists
Despite the narrow price movements and high market volatility, accumulation of ETH has persisted, suggesting ongoing bullish sentiment among investors. Key momentum indicators such as the Relative Strength Index (RSI), Money Flow Index (MFI), and Chaikin Money Flow (CMF) all indicate a positive buying pressure for ETH. This accumulation is further supported by the rise in futures Open Interest for ETH, which has grown by 17% since the ETF approval.
ETH Futures Open Interest Hits Highest Level Since October 2022
In the coin’s derivatives market, the current bullish sentiment is reflected in the rising futures Open Interest for ETH. According to data from Coinglass, ETH’s Open Interest has reached its highest level since October 2022, standing at $8.81 billion. This significant increase in Open Interest further reinforces the positive market sentiment surrounding ETH and indicates growing investor confidence in the altcoin’s future prospects.
In conclusion, the surge in new addresses trading ETH, coupled with the approval of the Bitcoin Spot ETF, has contributed to a bullish market sentiment for Ethereum. Despite high volatility and a narrow price range, accumulation of ETH continues to outpace sell-offs, with futures Open Interest reaching its highest level in months. Investors remain optimistic about the future of ETH, as reflected in the ongoing demand and positive momentum indicators.
Analyst comment
Positive news. Analyst prediction: The market for ETH is expected to continue to experience bullish demand and positive momentum, driven by the surge in new addresses, the approval of the Bitcoin Spot ETF, and the increasing futures Open Interest. Despite volatility and narrow price range, accumulation of ETH and investor confidence in the altcoin’s future prospects are expected to persist.
