Ethereum (ETH) price is facing a critical period as it hovers near strong resistance and support levels. Recent market indicators such as unrealized net profit or loss (NUPL) and whale activity suggest cautious investor sentiment.
Traders are closely monitoring key price levels, as a breakout above $2,500 could lead to an upside move, while failure to hold support at $2,000 could lead to a deeper correction.
ETH NUPL Shows Market is Cautious Currently
Ethereum’s current Net Unrealized Gain/Loss (NUPL) is 0.29, indicating that a significant number of ETH holders are still profiting, but market sentiment is leaning toward cautious.
NUPL is an indicator used to measure the overall market profit or loss by measuring the difference between the current price of ETH and the last price moved. This basically captures unrealized gains or losses held by market participants, and is an important indicator of market sentiment.
A high NUPL suggests that most holders are making profits, indicating optimism, while a low NUPL indicates increasing unrealized losses. This could potentially lead to increased selling pressure. Throughout September, the ETH market experienced multiple fluctuations, with NUPL briefly rising to 0.36, but dropping sharply towards the end of the month.
Read more: How can I invest in Ethereum ETFs?
ETH NUPL.Source: Glassnode
This back-and-forth movement reflected a recovery attempt that ultimately failed as market confidence waned and more participants began holding ETH at a loss. The recent decline in NUPL from 0.36 to 0.29 signals a shift towards more bearish sentiment.
Although some holders are still making profits, more holders are facing losses, which could lead to further downward pressure unless there is a strong catalyst for a market reversal. There is.
Ethereum whales are hesitant
The number of Ethereum addresses holding at least 1,000 ETH peaked at 5,628 on September 25th, marking a key point in whale accumulation, which often indicates bullish sentiment and market confidence. However, this number has since decreased slightly and the current number is 5,606, down from 5,621 just four days ago.
Tracking the movements of these large holders is extremely important as whales have capital that influences price movements. As whales accumulate ETH, this can create upward price pressure as their buying activity signals confidence in future price increases. Conversely, if they reduce their holdings, it could indicate they are becoming more cautious or a shift towards a more bearish outlook.
Addresses with a balance of 1,000 ETH or more. Source: Glassnode
However, the current decline in whale domicile does not suggest mass migration or widespread divestment. Rather, the data suggests that Whales are taking a wait-and-see approach, reducing their positions slightly without causing large market swings.
This type of behavior indicates that the market is in a phase of uncertainty and participants are reluctant to take decisive action in either direction. Although whale accumulation is tapering, the fact that the decline is not dramatic means there is no overwhelming bearish sentiment either.
ETH price prediction: strong support and resistance near current price
ETH Global In/Out of the Money Indicator Shows Ethereum Has Strong Resistance and Support Very Close to Current Price, Promising Clear Direction for ETH Ahead, we are reinforcing the idea that a sideways move is possible in the coming days.
The global In/Out of the Money metric identifies the distribution of addresses in profit (in the money) or loss (out of the money) based on the current price. This shows where clusters of buying and selling pressure can be found. This will help traders assess key price levels where ETH may encounter significant resistance or support.
Read more: Ethereum (ETH) Price Prediction 2024/2025/2030
Global money movement in and out of ETH. Source: Into the Block
If Ethereum can break out of the $2,500 zone, it could push further and test the strong resistance $3,000 price range near $3,200. However, on the downside, if ETH fails to hold the critical $2,000 support level, we could see a more significant correction and a return to the $1,700 range.
Disclaimer
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