Ether derivatives with the largest outflow in the last 18 months: Signal of the end of the correction

Ether Withdrawals from Crypto Derivatives Exchanges Reach Highest Level Since August 2023

The volume of Ether being withdrawn from crypto derivatives exchanges has reached its highest level since August 2023—a signal that analysts interpret as positive for Ether’s price.

On February 6, net Ether (ETH) flows on crypto derivatives exchanges were negative 300,000 ETH, representing approximately $817.2 million in outflows, with ETH currently trading around $2,700.

According to CryptoQuant analyst Amr Taha, this is a bullish signal because traders withdrawing their Ether assets from derivatives exchanges—which involve contracts between buyers and sellers to trade an asset at a predetermined price on a specified date—means reduced sell pressure, the closing of leveraged positions, and potentially moving ETH into “cold wallets.”

Taha stated that the increase in Ether volume withdrawn from derivatives exchanges reduces the “immediately available supply for selling,” making it harder for Ether’s price to decline.

ETH has recorded a 19.42% decline over the past 30 days and has been trading below the psychological level of $3,000 since February 3.

“If demand remains stable or increases, the price tends to rise due to lower available supply,” Taha added.

Crypto commentator Kyle Doops stated in an X post on February 6: “Large movements like this usually indicate lower selling pressure and significant position closures—often a bullish signal.”

This comes just days after former U.S. President Donald Trump’s son, Eric Trump, posted on X that “now is a great time to add ETH.”

This follows growing bullish catalysts for Ether, including the potential launch of an exchange-traded fund (ETF) for staked Ether and the continued increase in ETH holdings by Donald Trump’s crypto project, World Liberty Financial.

Consensys founder Joe Lubin recently stated that ETF issuers are optimistic that staking-based funds will soon receive regulatory approval.

“We are already in discussions with ETF providers, and they are working hard on this, so they expect approval in the near future,” Lubin said.