Ethereum market entered the "trust" zone. Will we see a price of USD 20K per ETH?
On-chain data suggests that Ethereum is in the "trust" stage of the bullish cycle amid new all-time highs, which opens the door to potentially even higher prices.
The price of Ether
ETH
3919 €
has risen over 240% since April, reaching an all-time high above USD 5,000 on Sunday. As a result, investor profitability has risen to levels similar to those observed in previous bullish cycles, suggesting that the ETH market is entering the "trust" phase, increasing the chances of a prolonged rise.
Investor sentiment in Ethereum in the "trust" phase
On-chain data points to similarities between the current stage of the Ether market and previous bullish cycles.
The net unrealized profit/loss (NUPL) indicator of long-term holders (LTH) of Ether has entered the "trust-denial" zone (green), a position that historically precedes significant price rallies, according to popular analyst Gert van Lagen in a post on X on Monday.
The LTH NUPL measures the difference between unrealized relative profits and unrealized relative losses of investors who have held Bitcoin for at least 155 days.
This zone is especially significant because it suggests that ETH has not yet reached the euphoria phase (blue), which is typically associated with cycle peaks.
In previous market cycles, the transition from trust to euphoria has coincided with substantial price increases.
For that to happen, the price of ETH "still has to rise further
