Ethereum’s Profit-Taking Pressure Dips — So Why Does Price Still Look Weak?
Despite reduced profit-taking pressure indicated by a low NUPL reading, Ethereum's price remains weak due to significant long liquidation overhang.Summary
Ethereum's price has fallen 18.5% in the last 30 days, and while on-chain signals suggest profit-taking pressure is minimal—with Net Unrealized Profit and Loss (NUPL) at 0.23, near July lows—the price is not bouncing.
The primary reason for this weakness lies in the derivatives market, specifically high long exposure. Liquidation maps show a significant cluster of long liquidations around $3,050, near current trading levels. A minor price drop could trigger forced selling from these long positions, overpowering any positive effect from low NUPL.
The price chart reinforces this, showing ETH within a falling channel with $3,053 acting as critical support, coinciding with the major long-liquidation zone. A break below this level could lead to a deeper drop, potentially pushing NUPL toward the June low of 0.17, which preceded the last major rally. For a bullish reversal, ETH needs to reclaim $3,653, but until the liquidation overhang subsides, the price is expected to remain trapped.
(Source：BeInCrypto)