Ethereum’s Long-Term Holder Net Unrealized Profit/Loss (NUPL) is currently reflecting a growing sense of unease among investors as the price struggles to break past the $3,000 threshold.
Presently, the NUPL data is pointing towards a trend of rising anxiety. This indicates that many long-standing investors are witnessing a decline in their paper profits, which is impacting their confidence levels.
If Ethereum manages to convincingly rise above $3,000, there might be a shift in sentiment from anxiety to confidence or even optimism. Similar patterns were observed in the mid-2023 period when Ethereum experienced significant upswings after breaching such levels.
A potential breakthrough past $3,000 could potentially reignite investor faith, encouraging them to hold onto their assets and attract fresh buyers, consequently boosting the price of ETH. However, if Ethereum fails to surpass the $3K mark, long-term holders might opt to continue or even escalate their sell-offs out of fear of greater losses.
Such a scenario could further drive down the price, intensifying market discomfort and pushing the NUPL into lower territories, resembling the capitulation phase witnessed in early 2023.
This sequence of events is likely to compound the downside pressure on Ethereum’s overall market capitalization.
Cboe Seeks Approval for Ethereum ETF Supporting Staking Mechanism
Despite the prevailing unease, investors in ETH could find solace in CBOE’s recent move to seek authorization for 21Shares to incorporate a staking feature in its Ethereum Spot ETF.
The decision, which received the green light from the Exchange’s President on the 12th of February 2025, holds significant promise for Ethereum, presenting a fresh avenue for its expansion.
Staking ETH involves the concept of holding the digital asset to contribute to the blockchain’s functionality and earning rewards in return.
By securing the necessary approval, the ETF can now engage in staking, potentially enhancing the attractiveness of holding ETH through the ETF by offering additional returns from staking activities.
This update is anticipated to restore investor trust in Ethereum, particularly following a period marked by market turbulence.
Through the integration of staking, the ETF not only provides exposure to ETH price fluctuations but also offers the supplementary benefit of earning staking rewards.
Insights into Historical Quarterly Returns Percentage
Wrapping up, it is noteworthy that Ethereum has typically showcased robust performance in the first quarter of the year, although it is currently experiencing a downtrend, trading at a discount of 22%.
This decline might mirror the usual volatility seen at the start of the year or broader market dynamics influencing digital assets.
Over the years, Q1 has witnessed around 80% average gains for Ethereum, with exceptions noted in 2018 and 2022. This indicates a possibility of a recovery or upward correction as the quarter unfolds.
If market sentiments improve or there are impactful crypto-related events, Ethereum could bounce back from its current slump, targeting results akin to previous first quarters. Conversely, if the market sentiment remains bearish or external economic factors impose pressures, the discount may persist or worsen, leading to a subdued performance for Ethereum in Q1.