In recent days, two major on-chain events have sparked attention across crypto markets.
The Ethereum market is showing intriguing on-chain activity as a massive inflow of 385,000 ETH was recorded on Binance starting May 27.
This surge coincides with Bitcoin’s Net Unrealized Profit/Loss (NUPL) metric touching the 0.6 level, a threshold historically associated with profit-taking phases. By examining these developments alongside past trends, we can uncover potential implications for the market.
Key Observations:
1️⃣Large ETH Inflow to Binance
* The first image illustrates a substantial net inflow of ETH into Binance, commencing around May 27.
* Such a surge in inflow typically signals increased selling pressure or large-scale repositioning by major holders, as ETH moves onto exchanges are often a prelude to potential sell-offs or liquidity provision.
* This is one of the largest daily inflows in months, dwarfing average exchange flows seen since March.
2️⃣ Bitcoin’s NUPL Metric Nearing 0.6
* The second chart reveals that Bitcoin’s Net Unrealized Profit/Loss (NUPL) metric is again approaching the 0.6 level.
* NUPL gauges the total unrealized profits or losses across the Bitcoin network relative to its market cap.
* Notably, the last two times NUPL touched these levels — in early March 2024 and late 2024 — they were followed by sharp corrections or consolidations as investors locked in gains.
Conclusion:
The recent 385,000 ETH inflow to Binance and the NUPL metric’s rise to 0.6 serve as critical warning signs for traders.
Historically, NUPL levels at 0.6 have acted as a precursor to profit-taking phases, with early March 2024 and late 2024 being prime examples.
While past performance does not guarantee future results, these indicators suggest that investors should maintain vigilance.
Written by Amr Taha
