Ethereum Price Skyrockets 40%, US Investors Start Taking Profits

Over the past week, Ethereum (ETH) has surged more than 40%, breaking through the US$2,500 level. This increase was driven by market enthusiasm for this crypto.

However, recent data shows that investors in the United States have started selling to secure profits, which could be a signal of a potential price decline in the near future.

Coinbase Premium Index (CPI) Decline

Based on information we quoted from Beincrypto media, the Coinbase Premium Index (CPI), which compares the price of ETH on Coinbase with other exchanges such as Binance, peaked at 0.022 on May 10.

However, this figure continued to fall to 0.0063. This decrease in CPI indicates a decrease in buying interest from US investors, although the price of ETH is still tending to rise.

Price Disparity and On-Chain Activity

There is a mismatch between the increase in the price of ETH and the number of Daily Active Addresses (DAA). Although the price has soared, the number of active addresses has not increased significantly.

This indicates that the price increase may not be supported by strong network activity, increasing the risk of a price correction.

Conclusion

Although Ethereum has shown impressive performance with a sharp price increase, indicators such as the decline in CPI and the imbalance with on-chain activity suggest that US investors are starting to be wary and taking profits.

Market participants need to monitor this situation to anticipate possible changes in the direction of ETH prices in the near future.