Recent market trends have seen Ethereum’s price retracting a bit, aligning with wider market signals, inclusive of geopolitical happenings. Currently, Ethereum is priced at $2,621, demonstrating a 3.2% slump over the past day.
This dip follows the latest news of a US federal court reinstating former President Trump’s tariffs, leading to a short-lived risk-averse sentiment in the crypto realm. Despite this minor setback, ETH has seen a rise of about 45% over the last month, buoyed by the momentum accumulated earlier in the quarter.
Concurrent with this pullback is a significant bump in on-chain movements, especially concerning Ethereum’s transfer to crypto exchanges. On May 27, a substantially large ETH transfer to Binance was spotted, which has sparked caution among the CryptoQuant analysts observing potential profit-booking tendencies.
Alongside this, Bitcoin’s Net Unrealized Profit/Loss (NUPL) metric has reached a historically significant point, typically associated with market cooldowns, suggesting a possible shift in the broader sentiment.
As per CryptoQuant contributor, Amr Taha, Ethereum saw a massive net inflow of roughly 385,000 ETH to Binance starting May 27. This is considered one of the largest daily exchange inflows of the asset in recent times.
Such large-scale inflows are often seen as signs of increased selling intent, especially when initiated by major holders or institutional bodies. The massive movement of ETH to centralized exchanges might indicate preparations for providing liquidity or expected market turbulence.
Simultaneously, Bitcoin’s NUPL, a metric that calculates the difference between unrealized profits and losses relative to market cap, has nearly hit the 0.6 threshold. Historically, this point has served as a trigger where investors start realizing gains, typically resulting in price consolidation or downward pressure. Previous instances in early March and late 2024 witnessed NUPL at similar levels, followed by pullbacks in Bitcoin’s price, which also impacted the wider market trend.
Collectively, these factors indicate that market players are repositioning themselves amid rising uncertainty. Taha stressed that while the 385,000 ETH inflow to Binance and the NUPL’s increase to 0.6 are not definitive sell signals, they are certainly noteworthy.
During earlier cycles, similar patterns coincided with phases where investors decreased exposure or switched assets. With ETH hovering near local peaks, the possibility of short-term correction or sideways movement should not be ruled out.
Taha suggests that investors should closely watch exchange inflows along with NUPL and other on-chain metrics to accurately assess sentiment shifts. Moreover, changes in regulatory or macroeconomic narratives, such as US trade policies or overall equity market behavior, could further impact crypto price dynamics.
Despite Ethereum’s continued long-term strength, recent indicators hint at a period of caution and strategic reassessment in the short term.
