According to data from Santiment, a few weeks of Ethereum (ETH) analytics helping investors profit led to a consolidation of the cryptocurrency around the $1,800 price range, which caused the Net Realized Profit/Loss (NRPL) indicator to turn negative. The NRPL of ETH published a negative value for the first time in the past three weeks on July 6th, at -2166.27.
ETH NRPL!
Generally, when a cryptocurrency’s NRPL is negative, it usually signals a higher probability of a future positive price movement. For ETH, a negative NRPL demonstrates that many investors who bought ETH in the past are now underwater with their positions. This situation could create buying pressure as these investors attempt to offset their losses, which historically has been associated with a potential price increase.
Data obtained from CoinMarketCap shows that at the time of writing, ETH was trading at $1,883. While its value increased by 0.25% during the same period, its trading volume declined by nearly 20%. On-chain analysis of the crypto exchange activity confirmed the reduced selling pressure. As ETH grappled with severe price volatility last month, exchange reserves steadily declined. According to data from CryptoQuant, the hosted exchange reserves dropped by 4% last month, standing at 15.14 million ETH at the time of writing. Furthermore, the month has seen the opening of several ETH long positions on known exchanges.
Santiment Reports!
Data from Santiment shows that there was a sudden increase in short ETH positions on July 8th, but traders have since turned back in favor of a price increase. While the sentiment-weighted cryptocurrency was located in the negative zone, emphasizing the impact of price volatility on investor sentiment, it was positioned in an uptrend at the time of writing and was ready to cross the centerline. In the daily chart, ETH took a middle position within the Bollinger Bands indicator. When the price of a cryptocurrency halts in the middle of the Bollinger Bands, it means it is trading around the moving average line.
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