Realized Value Hint At Change of Trend for Ethereum As Investors Pull $13 Billion from the Market

Approximately $13 billion has been pulled out of Ethereum markets, hinting at a possible change in investors’ sentiment about the leading altcoin.

Over the last three days, the price of Ethereum (ETH), the pioneer smart contracts platform, has been bullish, increasing from $1,540 to trade as high as $1,640 on September 15.

However, recent on-chain metrics hint at a possible change of sentiment about the leading altcoin. According to the Realized Value metrics provided by Glassnode, approximately $13 billion has been drained from Ethereum markets over the last three days.

The realized value (RV) of Ethereum is a metric used to decipher the capital outflow from ETH. Realized value is often used as an alternative to the market capitalization of a project.

Popular X (formerly Twitter) crypto analyst @ali_charts shared the charts, tweeting: “Ethereum has seen roughly $13 billion drained out of the #crypto market in the past few days, signaling a shift in investors sentiment.”

#Ethereum has seen roughly $13 billion drained out of the #crypto market in the past few days, signaling a shift in investors sentiment! pic.twitter.com/XEfcqWprFq

— Ali (@ali_charts) September 15, 2023

Are Ethereum Investors Taking Profit?

Since the realized value tells the points at which investors are entering and exiting the asset, the metric is often used as a pointer to decipher investors’ profit or loss-taking behavior.

The spike in the capital moved out of Ethereum markets coincides with an increase in the price of ETH. Over the last three days, the price of Ethereum has increased from $1,540 to as high as $1,640.

At the time of this writing, ETH is valued at $1,615. This trend hints at investors looking to take profits. To back this, there has been an increase in ETH Put positions across major crypto exchanges.

A Possible Change of Trend for Ethereum?

This week, 156,000 ETH (worth approximately $250 million) with a Put-Call Ratio of 1.09 will expire.

The max pain point for the ETH options expiring is $1,650. As a result, investors will look to keep the price of ETH below this price level until after the expiry. The price of Ethereum is already down by 1.2% over the last 24 hours.

While many on-chain metrics point to a possible change from the recent bullish trend for Ethereum, traders will continue monitoring the price movements of ETH until after the options expiry.