Blockchain Data Analysis Company Glassnode’s Insights
On Thursday, blockchain data analysis company Glassnode pointed out that although the price of Ethereum (ETH) is approaching its high from March 2024, the market’s unrealized profits are far below the levels seen at that time. Back then, the price of Ethereum was around $3,980, and the “relative unrealized profit” reached +2 standard deviations, whereas the current indicator is only close to +1 standard deviation.
As of the time of this publication, the price of Ethereum is approximately $3,845. According to Glassnode, if the relative unrealized profit indicator is to rise again to the +2σ level, it would imply that the price of Ethereum may need to increase to around $4,900 to reflect a similar level of paper profits and market sentiment as seen previously.
Source: glassnode
Comparative Analysis with Bitcoin
In contrast, the price of Bitcoin (BTC) appears to have entered an overheated zone. Glassnode noted yesterday that Bitcoin’s relative unrealized profit has currently surpassed +2 standard deviations, a range that has historically been highly correlated with the market entering a euphoric phase. The breakout of this indicator corresponds to the historical market structure near past peaks, which may indicate that potential selling pressure is brewing.
Source: glassnode
