This Ethereum Metric Called The Bottom Ahead Of Rally, Says Analytics Firm

Glassnode revealed the size on the series the ETHEREUM index, which reliably put the flag at the bottom of the price before the last gathering.

Ethereum NUPL fell into the campaign area earlier

In new mail On X, Glassnode talked about the ETHEREUM index of its joint report with the Cryptocurrency Exchande Coinbase. The standard concerned is “net profit/unrealistic loss”, which measures, as his name suggests, net profit or loss that investors originally keep as a whole.

The scale works by passing through the date of the transaction for each currency on the network to see the price to which the last time was transferred. If this previous transfer value is more than the current idea price for any symbol, it is assumed that this distinctive symbol is in a clearly achieved loss.

Likewise, the basis metal currency is considered a lower cost than the latest profit price. NUPL summarizes the degree of profit/loss involved in both cases and calculates the difference between them.

When the value of the indicator is positive, this means that the investors as a whole sit in a state of no net profit. On the other hand, the matter under the zero mark means the dominance of loss in the market.

Now, here is the graph that the analysis company that shows the trend in Bitcoin NUPL is shared in the past few years:

As visible in the graph above, Ethereum NUPL noticed a significant decrease in the early year when the original price decreased. In this diving, the index fell to -0.2, indicating that investors were immersed in a clear loss.

Not only that, the level of unrealized loss on the network was noticeable enough until feelings were marked as “surrender” under the Glassnode methodology.

Often, cryptocurrency markets move in the direction that the lesser crowd does not expect, so the presence of a large amount of loss can lead to a bottom. From the graph, it seems that this happened when NUPL decreased to the surrender area.

With the increase in the prices that followed from this limit, the feelings between Ethereum investors have naturally determined an improvement. However, NUPL may be monitoring, as the balance turns over an overwhelming majority towards profit, another transformation in the market may become possible: this transformation into a declining direction.