Altcoins News

Story: Ethereum Bottom Predicted by This Key Metric, Says Glassnode

By Pankaj K

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Understanding Ethereum’s NUPL Metric. NUPL stands for Net Unrealized Profit/Loss. It’s a metric used to measure the difference between…

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Ethereum’s Capitulation Phase and Price Rebound. Earlier this year, Ethereum’s price dropped significantly, dragging the NUPL into negative…

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What’s Next for Ethereum?. Glassnode cautions that while the NUPL’s move out of the capitulation zone is a good sign for…

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ETH Breaks Away from Bitcoin. What’s especially notable is that Ethereum has recently started to decouple from Bitcoin’s price…

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Final Thoughts. The Ethereum NUPL indicator has once again proven to be a useful tool for understanding market…

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Ethereum’s recent rally to $3,600 may not have come as a surprise to those tracking one powerful on-chain indicator.

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In a recent post on X (formerly Twitter), Glassnode shared insights from a report it created in collaboration with crypto exchange Coinbase.

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So, what exactly is NUPL and why is it important?

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NUPL stands for Net Unrealized Profit/Loss. It’s a metric used to measure the difference between the unrealized profits and losses across all Ethereum investors.

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The NUPL metric gives a sense of the overall market sentiment. When it’s positive, investors are mostly in profit. When it’s negative, they’re mostly in loss.

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However, in crypto, capitulation phases are often followed by trend reversals. That’s exactly what happened in Ethereum’s case.

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Since hitting that low point, Ethereum’s price has surged over 20% in just the past week, outperforming even Bitcoin.

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Glassnode cautions that while the NUPL’s move out of the capitulation zone is a good sign for recovery, investors should still keep a close watch on the metric.

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In other words, while NUPL successfully predicted the bottom this time, it may also help signal when a local top is forming.

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Additionally, Ethereum’s strong performance has come as the crypto market regains strength following months of sideways movement and regulatory uncertainty.

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