With the recent recovery in the Ethereum market, the cryptocurrency has risen above the $ 2,000 level again. This rise is supported by large investors buying and an increase in trading volume on US-based stock exchanges.
Corporate Purchases and On-chain Data
On-chain activity reveals that Ethereum has found strong buyer support. Analytics platform Santiment reports that the 30-day MVRV ratio, which shows the ratio of market value to realized value, is on the rise. MVRV ratio allows investors to evaluate the general trend of the market by monitoring the profit or loss level. The activity in Ethereum indicates that the price has reached a more balanced level after a long period of undervaluation.
Big Investors and US Demands
Blockchain analysis company Lookonchain recently noted that Ethereum purchases have occurred from some major wallets. Address 0xAb59 received 7,008 ETH at an average price of $2,079, making a total transaction of approximately $14.57 million. Additionally, address 0x166f withdrew a total of 20,000 ETH from Binance and Deribit exchanges within two hours. The largest single transfer was made with 8,000 ETH from the Binance hot wallet.
The increase in US-based investor interest is accompanied by the Ethereum Coinbase Premium Index rising to positive levels again. This index measures the difference in the price of Ethereum on the Coinbase exchange compared to other exchanges. This index, which was negative throughout most of January and February, indicated periods when US buyers were weak. However, with the recent jump, the Ethereum price on Coinbase is trading at a slight premium compared to offshore exchanges.
An analyst points out that this transformation in the market could mean a critical threshold for Ethereum:
“Ethereum’s upward movement continued during most of the periods when the Coinbase premium was positive. Now the premium has reached zero and we are at an important turning point.”
Large investors and various derivative traders also share in the optimistic atmosphere in the market. According to OnchainLens data, trader Machi’s 25x leveraged long position began to generate profits and the return on the position exceeded $760 thousand.
On the other hand, the large investor known as “pension-usdt.eth” made a realized profit of approximately 1.16 million dollars by closing both ETH and BTC long positions.
It remains unclear whether the rising momentum will continue in the coming weeks.
