The recent surge in Ethereum's price to $3600 marks a significant event in the market, fueled by institutional interests and activity in derivatives.
Market Growth of Ethereum
Ethereum has risen in rank among the top 30 global assets, impacting investor sentiment. Increased activity in futures and institutional investments through ETF inflows are also contributing to this rise.
The Significance of the NUPL Metric
The NUPL metric by Glassnode identified a potential market bottom, prompting a rapid 20% increase in Ethereum's price. This metric is known for its reliability backed by historical analysis from Glassnode, which identifies capitulation zones before significant rallies.
Institutional Purchases and Market Trends
Significant price shifts in the Ethereum market were driven by both derivative activities and spot ETF inflows reaching $2.51 billion. These actions reflect increased market optimism and highlight the influence of leverage. Glassnode's data suggests Ethereum is on an upward trajectory, supported by market dynamics and institutional investments.
Historical patterns show that capitulation zones identified by NUPL often precede strong upward movements. Institutional interest and exchange outflows provide a critical basis for Ethereum's near-term trajectory, though investors remain cautious amid the dominance of the derivatives market.
