Ethereum has seen increased institutional interest in recent weeks. However, the price is entering a consolidation within a narrow range.
According to on-chain data, selling pressure from US-based whales and institutions has steadily decreased over the past month, despite the lackluster performance of altcoins.
US Investors Still Interested in Ethereum
According to CryptoQuant's data, Ethereum's Coinbase Premium Index (CPI) has consistently remained above 0 over the past month, indicating continued buying interest from US-based investors.
At the time of writing, the CPI is 0.03.
This indicator measures the price difference of ETH on Coinbase and Binance, which is useful for tracking US investor sentiment.
When the CPI rises, ETH is traded at a premium on Coinbase compared to international exchanges, reflecting strong buying pressure from US-based investors.
Conversely, if the CPI falls or turns negative, it indicates that demand on Coinbase is lagging behind the global market, which could be due to profit-taking or decreased interest from US buyers.
Therefore, despite the lackluster price performance in recent weeks, the CPI consistently remaining above 0 suggests that US investors are continuing to buy rather than leaving the market. This indicates a cautious accumulation trend.
Moreover, steady weekly inflows into ETH-based ETFs confirm the continued interest of major investors. According to SosoValue, these funds have recorded consistent weekly net inflows since May 9th.
This reflects the ongoing interest of institutional investors who want exposure to ETH, even amid relatively quiet price movements.
ETH Forms Narrow Box Range
The daily chart of ETH/USD confirms that ETH has been consolidating within a price range of $2,750 to $2,424 since early May. If institutional investors increase buying pressure and market sentiment improves, the coin could rise towards the $2,750 resistance level and attempt to break through.
If successful in breaking this resistance, ETH's price could rise further to around $3,067.
However, if investor participation weakens and downward pressure increases, ETH could fall back to $2,424. If that support level breaks, it could drop to $2,185.
