Analyst Amr Taha believes that the record outflow of Ethereum from derivatives exchanges points to an upcoming rise in the ETH price.
On February 6, clients of trading platforms offering Ethereum-based derivatives withdrew about 300,000 ETH worth $817,2 million, the highest amount in the past year and a half.
Taha believes that these statistics signal the imminent emergence of a bullish trend, because the outflow of Ethereum leads to:
- Reducing pressure on the ETH rate;
- Closing many leveraged positions;
- Reducing the number of coins that can be sold.
Ethereum inflows and outflows from derivatives exchanges
If demand for cryptocurrency remains at the current level or increases, the Ethereum rate will inevitably go up. However, Amr admits that in the short term, demand for ETH may fall if the coins were withdrawn by traders who closed long positions. Accordingly, over the next few days, the digital asset risks becoming even cheaper.
At the same time, the chart data clearly speaks in favor of the continuation of the bearish trend in the medium term. Theoretically, ETH can rise in price to $3,000, but the bulls are unlikely to be able to break through this resistance barrier and consolidate above the downward trend line that emerged in 2024. In this regard, after the correction, we should expect a dump towards $2,000.
Possible change in the rate of Ethereum
It is worth noting that analyst Ali Martinez sticks to a different point of view and predicts the start of a bull rally. In his opinion, the Ethereum rate has a chance not only to overcome the $4,000 mark, unseen since December last year, but also to rise to $7,400.