Ethereum experienced significant outflows from derivative exchanges after its price dropped below the $2,200 mark on September 7. According to CryptoQuant analyst Amr Taha, over 40,000 Ethereum, valued at approximately $90 million, exited derivative exchanges over the weekend. These outflows began shortly after the ETH price hit a local bottom of $2,172 on Saturday, September 7.

Negative netflow exceeding 40,000 ETH on derivative exchanges indicates that more ETH is being withdrawn, which might suggest reduced selling pressure.

The analyst suggests that these increased outflows could indicate a reduction in selling pressure and potentially lower the borrowing amounts for opening new short positions.

Per data from Santiment, Ethereum’s total open interest dropped by around $171 million on September 6, falling to $4.78 billion. However, the asset’s open interest quickly recovered most of its losses and is currently at $4.93 billion.

Ethereum has risen 1.3% in the past 24 hours and is trading at $2,325 at the time of writing. Its daily trading volume increased by 33%, reaching $12.4 billion. Data from Santiment shows that the ETH Relative Strength Index (RSI) is hovering at 34, indicating that the second-largest cryptocurrency is oversold at this price point as fear, uncertainty, and doubt (FUD) dominate the market.

Despite the notable ETH outflows from derivative exchanges, the weighted sentiment around Ethereum remains negative according to Santiment data.

Additionally, spot ETH exchange-traded funds in the U.S. also recorded consecutive outflows last week. These investment products have seen $568.5 million in net outflows since their launch in July.

Stay updated with the latest cryptocurrency news and trends on Global Crypto News. Explore more to make informed decisions in the ever-evolving world of cryptocurrencies.

Post Views: 5