Ethereum fund premium rises: Will it trigger an ATH for ETH again?

The recent surge in ETH’s Fund Market Premium is attributed to the unexpected approval of the spot ETH ETF applications by the U.S. SEC.Although the metric has maintained an uptrend since the beginning of May, most of the rally came after the U.S. Securities and Exchange Commission ETH’s Fund Market Premium measures the difference between the coin’s price in spot markets and the price of an Ethereum-based fund or trust.

The coin’s CPI, which tracks the difference between its prices on Coinbase and Binance, has dipped back into negative territory, suggesting less trading activity on the US-based exchange.Confirming this trend, the value of ETH’s Coinbase Premium Gap was also negative at press time. A negative CPG indicates that the altcoin is trading at a lower price on Coinbase compared to other major exchanges.This may be due to a number of reasons, ranging from market imbalances to liquidity issues. But in this case, it is due to a shift in attention toward ETH-based investment products.

As depicted by its rising key momentum indicators, ETH accumulation has significantly surged in the past few days.It is key to note that at these values, buyers’ exhaustion might set in as the market becomes overheated. Hence, a potential minor price correction might be on the horizon.Abiodun is a full-time journalist working with AMBCrypto. He is also a lawyer with over 2 years of experience.

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