- Ethereum investors may be waiting for new opportunities to sell for profit, according to Glassnode analysts.
- Bitcoin’s Net Unrealized Profit/Loss (NUPL) indicator passed the 0.5 level three months earlier than Ethereum, according to a report by blockchain analysis firm Glassnode.
- The 0.5 level in NUPL indicates that unrealized profit is more than 50% of the total market value of the invested asset, which usually coincides with periods when new records are broken in price.
As Ethereum investors anticipate new profit-taking opportunities, the cryptocurrency’s short-term buying cost is close to its current price level, according to blockchain analysis firm Glassnode.
Short-term Ethereum Investors’ Buying Cost
The buying cost of short-term investors in Ethereum is very close to the current price level. Glassnode warned that these investors could panic if the market fluctuates downwards. Additionally, unlike Bitcoin, it was noted that short-term investors in Ethereum have not accumulated a large amount of capital. This is evidenced by the fact that while Bitcoin broke its price record in 2021, Ethereum has yet to do so, indicating that new capital is not flowing into the ETH market.
Long-term Ethereum Investors
This is pushing long-term Ethereum investors to wait for better opportunities to sell for profit. The Glassnode team stated, “When we look at the capital flow between Bitcoin and Ethereum, we can see that Bitcoin takes the lion’s share, which is probably due to spot ETFs in the US. Short-term investors and speculative movements are focused on Bitcoin, and Ethereum benefits from this to a very small extent.”
Conclusion
In conclusion, while short-term Ethereum investors may be on edge due to the close proximity of their buying cost to the current price level, long-term investors are patiently waiting for better profit-taking opportunities. The capital flow is currently more focused on Bitcoin, with Ethereum only benefiting minimally from this trend.
