Ethereum Demand Hits 13-Month High Amid Bullish Market Activity
Ethereum Demand at 13-Month High: The Reason?
The demand for Ethereum (ETH) has risen to a 13-month high. This could be due to the recent approval of the first Bitcoin Spot ETF.
Rising Activity in the Ethereum Network
Over the past three weeks, Ethereum has seen a significant increase in network activity. According to data from Santiment, demand for the altcoin reached a 13-month high on January 11. On that day, 636,480 new addresses were created in the network to trade the leading altcoin. This many new ETH wallet addresses were last created in a single day in November 2022.
Influence of the Bitcoin Spot ETF
The surge in demand for the coin on January 12 coincided with the approval of the first Bitcoin Spot ETF, which was granted by the U.S. Securities and Exchange Commission on January 10. According to data from CoinMarketCap, the surge in demand on January 12 caused the price of ETH to rise to over $2700. This price was last reached in April 2022.
High Demand Despite Volatility
Despite high volatility and the narrow price range of ETH, accumulation continued and surpassed the sale of the coin. At the time of publication, ETH’s key momentum indicators were at overbought highs. For example, the Relative Strength Index (RSI) was at 70.68, while the Money Flow Index (MFI) was at 87.41. ETH’s Chaikin Money Flow (CMF) was also above zero at 0.15. A CMF value above zero indicates higher buying pressure.
Bullish Sentiment in the Derivative Market
In the coin’s derivative market, the currently bullish sentiment was reflected in a rising open interest in futures. Since the approval of the ETF, ETH’s open interest has increased by 17% according to data from Coinglass. At the time of publication, open interest was at $8.81 billion, the highest level since October 2022.
Sources
Santiment, CoinMarketCap, and Coinglass.
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