The NUPL indicator shows that the market remains in positive territory, with the latest reading around 0.22. This level indicates that the average Ethereum holder is still sitting on unrealized profits, but these profits are moderate rather than excessive. Historically, this zone is classified as a phase of belief or cautious optimism, not euphoria. This suggests the market has not yet reached a dangerous psychological peak, while also no longer being in a fear or capitulation phase.
When this is combined with Ethereum Exchange Netflow data on Binance, the picture becomes clearer. Recent data shows that netflows have leaned toward net outflows from the exchange (frequent negative values), meaning that more ETH is being withdrawn from Binance than deposited. This behavior is typically interpreted as reduced immediate selling pressure, especially when it coincides with NUPL remaining in a stable positive range.
What stands out is that these withdrawals are not accompanied by a sharp rise in NUPL. This suggests the market is not experiencing widespread profit-taking. Instead, participants appear to prefer holding ETH or moving it off exchanges for other purposes such as long-term storage, staking, or ecosystem-related use. This constructive divergence between exchange outflows and the absence of NUPL euphoria represents a structurally healthier setup compared to previous cycles.
combining these two indicators points to a phase of strategic repositioning in the Ethereum market: profits exist but are not extreme, while selling pressure on Binance remains limited. This reduces the likelihood of sharp short-term corrections and leaves the medium-term trend more sensitive to structural and fundamental developments rather than short-term speculative momentum.
Written by Arab Chain
