Ethereum (ETH) price is facing a critical juncture as it is close to strong resistance and support levels. Recent market metrics including Unrealized Profit/Loss (NUPL) and whale activity suggest cautious sentiment among investors.
Traders are keeping an eye on key price levels as a break above $2,500 could lead to a rally, while failure to hold the $2,000 support could result in a deeper correction.
ETHâs NUPL shows the market is cautious at the moment
The current Unrealized Profit/Loss (NUPL) for Ethereum stands at 0.29, indicating that a considerable number of ETH holders are still in profit, but market sentiment is leaning towards caution.
NUPL is a metric used to assess the overall profit or loss of the market by measuring the difference between the current price of ETH and the price at which it last moved. It essentially captures the unrealized gains or losses of market participants and is a key indicator of market psychology.
A higher NUPL suggests that most holders are in profit, signaling optimism, while a lower NUPL points to growing unrealized losses, potentially leading to increased selling pressure. As such, the ETH market experienced several swings in September, with NUPL briefly rising to 0.36 before falling sharply towards the end of the month.
Read more: How to invest in Ethereum ETFs?
NUPL do ETH. Fonte: Glassnode
This back-and-forth movement reflects failed recovery attempts as market confidence weakened and more participants began holding ETH at a loss. The recent drop in NUPL from 0.36 to 0.29 suggests a shift to more bearish sentiment.
While some holders are still seeing profits, a growing number are facing losses, which could result in further downward pressure unless there is a strong market catalyst for a reversal.
Ethereum Whales Are Hesitant
The number of Ethereum addresses holding at least 1,000 ETH peaked at 5,628 on September 25, marking a significant point of whale accumulation, which usually signals bullish sentiment or confidence in the market. However, that number has seen a modest decline, with the current count at 5,606, down from 5,621 just four days ago.
Tracking the movements of these large holders is crucial because whales have the capital to influence price action. When whales accumulate ETH, it can create upward pressure on prices, as their buying activity suggests confidence in future price appreciation. Conversely, when they reduce their positions, it can indicate caution or a shift to a more bearish outlook.
Addresses with Balance >= 1,000 ETH. Source: Glassnode
However, the current reduction in whale addresses does not point to a mass exodus or widespread sell-off. Instead, the data suggests that whales are taking a wait-and-see approach. They are reducing their positions slightly without triggering major market volatility.
This type of behavior indicates that the market is in a phase of uncertainty, where participants are reluctant to take decisive action in either direction. Although whale accumulation has slowed down, the fact that the decline is not dramatic implies that there is no overwhelming bearish sentiment.
ETH Price Prediction: Strong Support and Resistance
The Global In/Out of the Money metric shows that Ethereum has resistance and support levels very close to its current price. This reinforces the idea that ETH could move sideways in the coming days before committing to a clear direction.
The Global In/Out of the Money metric identifies the distribution of addresses that are either in the money or out of the money based on the current price. It shows where clusters of buying and selling pressure can be found. This helps traders assess key price levels where ETH may encounter significant resistance or support.
Read more: Ethereum (ETH) Price Prediction 2024/2025/2030
ETH Global In/Out of the Money. Fonte: IntoTheBlock
Therefore, if Ethereum manages to break above the $2,500 zone, it has the potential to move higher and test the $3,000 price range, with strong resistance until around $3,200. However, if ETH fails to hold the critical $2,000 support level, it could see a more significant correction, potentially pulling back towards the $1,700 range.
The article Ethereum (ETH): Stuck Between Strong Resistance and Support Zones appeared first on BeInCrypto Brasil.
