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How ETH’s spot volume hit $20B despite Bitcoin’s ATH

3min Read

Here’s a summary of the sentiment around ETH when everything was all about BTC.

ETH news around Bitcoin's all-time high

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  • Interest in ETH did not drop because Bitcoin’s price hit ATH.
  • The 30-day MVRV ratio and other indicators suggested that the cryptocurrency was undervalued.

The 5th of March was a historic day for the crypto market as Bitcoin [BTC] hit a new all-time high. Despite the attention Bitcoin got, Ethereum [ETH] was not sidelined. According to data AMBCrypto got from Kaiko, the total spot volume for ETH on the said date exceeded $20 billion.

The hike in the volume of Centralized Exchanges (CEXes) meant that interest in the altcoin remained visible. For instance, Etheruem’s trading volume on Binance climbed above $10 billion. Bybit had $3.2 billion while Coinbase and OKX registered $1.62 billion and $2.13 billion in volume respectively.

However, it is important to mention that Bitcoin’s total spot volume was more than ETH on the same day. Based on Kaiko’s data, Bitcoin’s CEX spot volume reached $46.25 billion.

ETH shows it’s in no way small

Findings from our end showed that Ethereum was able to sustain that level of interest because of its price. Before Bitcoin’s ATH, ETH’s price action moved at a high pace. This climb indicated that market participants were optimistic about the altcoin the same way they were about BTC.

At press time, ETH changed hands at $3,842. This value represented a 15.24% increase in the last seven days. According to the ETH/USD daily chart, a bullish engulfing candle after the cryptocurrency slipped to $3546 earlier. This quick upside return was proof that interest in ETH aligned more with accumulation than selling.

The Accumulation/Distribution (A/D) indicator also supported this thesis as the reading climbed. Furthermore, AMBCrypto analyzed the Exponential Moving Average (EMA). At press time, the 20 EMA (blue) had crossed over the 50 EMA (yellow). This crossover suggested a bullish trend.

ETH price action, analysis and prediction

Source: TradingView

ATH  for ETH too?

Should the EMA maintain this position, ETH’s price could rise above $4,000. Furthermore, the Supertrend displayed a buy signal above $3,000, indicating that no kind of bearish pressure could force the price below the region.

It was also a similar situation with the Aroon indicator which revealed a bullish bias. Going forward, ETH could climb toward $4,500 in the short term. However, there could be hurdles on the way as the price might pull back at some point.

In terms of the active addresses, on-chain data showed that the number jumped to 565,000 on the 5th of March. Though the number had decreased at press time, the initial hike meant that speculation involving ETH increased.

In addition, the 30-day Market Value to Realized Value (MVRV) ratio was 25.10%. This ratio implies that every ETH holder would make a 25% profit if they sold at the press time price. The MVRV ratio can also tell if a cryptocurrency is at a fair value or otherwise.

ETH increasing MVRV ratio as activity decreased

Source: Santiment


Read Ethereum’s [ETH] Price Prediction 2024-2025


Thus, since the ratio was far below 100%, it meant that ETH’s upside potential remained a massive one. At the height of the bull market, the altcoin could hit 2x its current value.

But when that would happen remains a mystery.

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Victor Olanrewaju is a full-time journalist at AMBCrypto. Settled in Lagos, his fascination with blockchain technology and the cryptocurrency market arose out of his love of freedom and everything free. As a Nigerian, Victor understands the impact unfounded financial restrictions have on a population. He sees Bitcoin and cryptos as a way to circumvent these obstacles, as a tool for value creation despite all the setbacks. A graduate in Physics, Victor previously worked as a Senior Marketer at Melange Technologies. Before that, he dealt with crypto-marketers on a regular basis in his capacity as Copywriter at Ventrix Media. At AMBCrypto, Victor’s focus is on assessing the real effectiveness of both on-chain and off-chain developments on a project and its community sentiment.
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