Ethereum Sentiment Turns Bullish in Q2 2025 as NUPL Signals Market Bottom

Key Insights:

• NUPL data confirmed a sentiment shift before ETH’s sharp rebound.
• ETH gained 70% amid institutional buying, short squeeze, and ETF inflows.
• Ethereum’s market cap reached $416B, entering the top 30 global assets.

Ethereum’s market sentiment flipped from capitulation to belief in Q2 2025, as shown by Net Unrealized Profit/Loss (NUPL) data by Glassnode. This shift occurred before Ethereum’s price rebounded and before inflows into ETFs increased.

The NUPL metric confirmed that the market bottomed in advance of the rally, giving early signals of renewed investor optimism. Ethereum’s price rose more than 70% heading into July, confirming the trend change.

This sentiment reversal aligned with visible on-chain strength and early signs of institutional interest. The combination supported a shift in Ethereum’s overall market structure.

Whale Accumulation and ETF Inflows Drive Ethereum Rally

CryptoQuant reported a growing premium on Ethereum on Coinbase, a platform used primarily by U.S. institutions and whales. DanCoinInvestor highlighted this as a signal of intensified buying from American investors.

The Kobeissi Letter noted that net leveraged shorts on ETH reached a record high by July 1, about 25% above February 2025 levels. The resulting short squeeze contributed significantly to Ethereum’s rapid price rise, fueled by forced liquidations.

Simultaneously, BlackRock’s Ethereum ETF posted inflows on 29 of 30 days leading into July. Transaction logs confirmed that President Trump’s World Liberty Financial made a $5 million ETH purchase within 24 hours of the breakout.

Blockchain records from Gnosis and CoW Protocol also showed $8 million in ETH transfers linked to the same entity. These movements confirmed growing institutional involvement in Ethereum.

Ted Pillows reported that Ethereum’s Real World Asset (RWA) value reached an all-time high of $7.72 billion. This emphasized ETH’s leading role in the tokenized asset sector.

By mid-July, Ethereum entered the top 30 global assets, reaching a market cap of $416.17 billion and surpassing companies like Johnson & Johnson. This milestone reflects increased investor confidence and growing market validation.

Analyst BitBull compared Ethereum’s current position to Tesla’s in 2019, calling ETH a comparable breakout opportunity. He pointed to similar technical structures and momentum patterns between the two.

Ethereum’s rapid rise, backed by NUPL sentiment data, institutional buying, ETF activity, and structural growth, confirms a significant market phase shift. These combined factors suggest Ethereum has exited its bottoming phase and entered a renewed cycle of expansion.