Analyst: Ethereum's net outflow on derivatives exchanges is the highest level since August 2023, a bullish signal

Odaily News CryptoQuant analyst Amr Taha pointed out in a report on February 6 that on February 6, the net outflow of Ethereum on derivatives exchanges was 300,000 (about US$817.2 million), reaching the highest level since August 2023. This is a bullish signal because traders withdrawing ETH from derivatives exchanges means reduced selling pressure, while closing leveraged positions and possibly transferring Ethereum to cold wallets.
Taha said that the increase in Ethereum outflows from derivatives exchanges reduces the "immediate supply available for sale," making it harder for Ethereum prices to fall; if demand remains stable or increases, prices tend to rise due to reduced supply. Cryptocurrency commentator Kyle Doops also said in a February 6 X post: "Such a large outflow usually means a reduction in selling pressure and the unwinding of major positions - which is usually a bullish sign." (Cointelegraph)