Ethereum is trying to recover after capitulation, but reaching $2,000 remains unlikely

Ethereum has recently shown an attempt to recover from the significant losses it incurred towards the end of March. The alternative currency, often considered the leader in the field of smart contracts, is currently trading at $1,774.

While this reflects an effort to regain momentum, Ethereum's recovery may be hindered by short-term holders (STHs) looking to capitalize on any immediate profits.

Ethereum investors tend to sell

The value of the Ethereum network and user activity show signs of a potential recovery, but the current market sentiment remains under pressure. The Net Unrealized Profit/Loss (NUPL) index, which measures the overall profit or loss of traded coins, has entered a capitulation phase.

Despite the rise in Ethereum's price, the underlying sentiment remains cautious. The increase in NUPL could quickly reverse if short-term holders (STHs) decide to liquidate their positions.