While Ethereum (ETH) has taken the brunt of the recent declines, analysts are not in a clear consensus on the ETH price. While some say the decline could continue to lower levels, some analysts predict that a rise is on the way.
At this point, one of the analysts who was bullish was CryptoQuant analyst Amr Taha, who argued that increasing Ethereum outflows on crypto derivatives exchanges were a bullish signal.
The analyst said that the amount of Ethereum withdrawn from crypto derivatives exchanges has reached its highest level since August 2023, which is a positive signal for the ETH price.
Analyzing the impact of ETH outflows on the price, the analyst stated that investors withdrawing their Ethereum from the derivatives exchange means that selling pressure is decreasing, leverage positions are being closed and ETH is potentially being moved to cold storage, which is a bullish signal.
“When ETH leaves derivatives exchanges, it typically indicates that investors are closing leveraged positions or moving ETH to cold storage.
This reduces the supply available for sale and makes it harder for the price to drop.
If demand remains constant or increases, price tends to rise due to lower available supply.”
“There has been increased Ethereum outflows on crypto derivatives exchanges. Large moves like this usually mean less selling pressure and closing of large positions, which is usually a bullish signal,” another analyst commented.
*This is not investment advice.
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