The analytical company in the Glassnode chain revealed the Ethereum indicator, which reliably marked the lowest price before a recent rally.

Ethereum NUPL had previously fell into the quote zone

In up-to-date post WX Glassnode talked about the Ethereum indicator from a joint report with listing cryptocurrencies. The meter in question is “unrealized net profit/loss”, which, as its name suggests, the net amount of profit or loss, which is now organized by assets as a whole.

The record works, passing through the history of the transaction of each coin on the web to see what price has recently been moved. If this previous transfer value was greater than the current spot price for any token, it is assumed that this particular token is in a state of unrealized net loss.

Similarly, a coin with a base base below the latest price is included in the profit. NUPL summarizes the degree of profit/loss in both cases and calculates the difference between them.

When the value of the indicator is positive, it means that investors as a whole sit in a state of unrealized net profit. On the other hand, it is under a zero sign implices the dominance of loss on the market.

Here is a chart divided by an analytical company that shows the trend in Bitcoin NUPL over the past few years:

As you can see in the graph above, Ethereum Nupl observed a significant decrease at the beginning of the year, when the price of assets has dropped. In this immersion, the indicator dropped to around -0.2, which suggests that investors have submerged into a net loss.

Not only the level of the relative unrealized loss of the current on the web was sufficiently worthy of dignity for the sentiment to be determined as “surrender” in the Glassnode methodology.

Often, cryptocurrency markets move in a direction that the crowd is least expected, so the presence of a immense loss can lead to DNA. From the chart it seems that this happened when Nupl fell into the surrender zone.

As the price increased from such a low level, the sentiment among investors Ethereum naturally marked improvement. However, NUPL may have an eye, because when the balance moves in the direction of profit, another change on the market may become likely: the one to decline.

Price ETH

Ethereum has broken off from Bitcoin, because its price increased by more than 20% over the past week, reaching USD 3600.