On February 7th, PANews reported that according to Cointelegraph, analyst Amr Taha from CryptoQuant pointed out in a report on February 6th that the net outflow of ETH on Derivatives exchange was -300,000 coins (worth about 817.2 million USD), reaching the highest level since August 2023. This is a bullish signal because traders withdrawing ETH from Derivatives exchange means reducing selling pressure, settling leverage positions, and potentially transferring ETH to cold wallets.
Taha stated that the increase or decrease in ETH flowing out of Derivativesexchange has reduced the "available immediate supply", making it more difficult for the price of ETH to fall; if demand remains stable or increases, the price often rises due to the reduced supply.
Cryptocurrency commentator Kyle Doops also stated in a February 6th post on X that "Such a large-scale outflow usually means a decrease in selling pressure and the closing of major positions - which is typically a bullish signal."
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StabilityLeadsToProfi
· 02-07 08:20
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Analyst: Ethereum's net outflow on Derivatives exchange reaches a new high in 18 months, which is a bullish signal
On February 7th, PANews reported that according to Cointelegraph, analyst Amr Taha from CryptoQuant pointed out in a report on February 6th that the net outflow of ETH on Derivatives exchange was -300,000 coins (worth about 817.2 million USD), reaching the highest level since August 2023. This is a bullish signal because traders withdrawing ETH from Derivatives exchange means reducing selling pressure, settling leverage positions, and potentially transferring ETH to cold wallets. Taha stated that the increase or decrease in ETH flowing out of Derivativesexchange has reduced the "available immediate supply", making it more difficult for the price of ETH to fall; if demand remains stable or increases, the price often rises due to the reduced supply. Cryptocurrency commentator Kyle Doops also stated in a February 6th post on X that "Such a large-scale outflow usually means a decrease in selling pressure and the closing of major positions - which is typically a bullish signal."