40,000 ETH left derivative exchanges, brings lower selling pressure

September 9, 2024 at 9:31 am

Edited by Dorian Batycka

Markets

40,000 ETH left derivative exchanges, brings lower selling pressure

Ethereum witnessed increased outflows from derivative exchanges after its fall below the $2,200 mark on Sept. 7.

According to CryptoQuant analyst Amr Taha, over 40,000 Ethereum (ETH), worth roughly $90 million, left derivative exchanges over the weekend. The outflows started a few hours after the ETH price touched a local bottom of $2,172 on Saturday, Sept. 7.

https://twitter.com/cryptoquant_com/status/1833049252521500903

The analyst claims that the increased outflows could hint at reduced selling pressure. This could also reduce the “borrowing amounts for opening new short” positions.

Per data from Santiment, the ETH total open interest declined by roughly $171 million on Sept. 6, falling to $4.78 billion. However, the asset’s open interest quickly regained most of its losses and is currently sitting at $4.93 billion.

40,000 ETH left derivative exchanges, brings lower selling pressure - 1 — ETH price, RSI, open interest and sentiment – Sept. 9 | Source: Santiment

Ethereum is up 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 the market intelligence platform shows that the ETH Relative Strength Index is hovering at 34. The indicator shows that the second-largest cryptocurrency is oversold at this price point as FUD dominates the market.

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

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