Ethereum Kimchi Premium Spikes To New High — Sign Of Impending Sell-Off?

The price of Ethereum appears to be recovering nicely over the weekend after a period of investor ￰0￱ “king of altcoins”, following what looked like an aggressive return above the $4,200 level earlier this week, is now lagging under the psychological $4,000 ￰1￱ the Ethereum price has been building some positive momentum over the past day, the shadows of the October 10 downturn still seem to be weighing on investor sentiment. A market phenomenon known as the “Kimchi Premium” suggests a few tedious weeks ahead for the second-largest ￰2￱ Happened Last Time Kimchi Premium Saw A Similar Surge In a recent post on the social media platform X, market analyst CryptoOnchain revealed that the Kimchi Premium has been on the rise over the past ￰3￱ observation is based on the movement of the on-chain indicator Korea Premium Index, which measures the price difference between South Korean exchanges and other global ￰4￱ Reading: More Pain Ahead?

Bitcoin Trendline Breach Sparks Talk Of Corrective Wave In Play This metric, or the “Kimchi Premium,” shows how much extra Korean traders are willing to pay for a particular cryptocurrency (Ethereum, in this case). When the index is positive, it means that Korean retailers are willing to pay a premium for the crypto assets. Meanwhile, a negative Korean Premium Index signals that the retailers are only willing to buy the cryptocurrency at a ￰5￱ to CryptoOnchain, the Korea Premium Index for Ethereum recently saw a notable surge to around 8.2%, its second-highest level this ￰6￱ market analyst noted that this level of Kimchi Premium is a troubling sign, as it historically suggests extreme retail FOMO (Fear of Missing Out) and a potential price top.

Typically, whales tend to take advantage of the price gap by selling on Korean exchanges when the Korea Premium Index is on the ￰7￱ to increased selling pressure, the Ethereum price now faces a greater risk of ￰8￱ instance, the last time ETH saw a Kimchi Premium this high was in January, coinciding with the price fall to around $1,500. With this in mind, investors might want to tread with caution, as the odds of a sustained downward trend are significantly ￰9￱ Price At A Glance As of this writing, the price of ETH stands at around $3,875, reflecting no significant change in the past 24 ￰10￱ what was expected to be a bullish period for the cryptocurrency market, “Uptober” has not particularly lived up to the expectations of ￰11￱ a positive start to the month, the Ethereum price is currently down by almost 10%.

Related Reading: Analyst Predicts XRP Price Will Hit $1,200 With 50,000% Run Driven By These Factors Featured image from DelishGlobe, chart from TradingView