Ethereum's Derivatives Net Cash Flow Hits 18-Month Low: Bullish Signal for Price Increase?

The Ethereum futures market has just recorded the largest outflow of ETH since August 2023, with over 300,000 ETH withdrawn from trading platforms on February 6, 2025. This significant move, with a total value of approximately $817.2 million, occurred amidst strong market fluctuations. A strong signal for the derivative market On February 6, cryptocurrency derivatives platforms recorded a record net outflow of 300,000 ETH, equivalent to about 817 million dollars. According to Amr Taha, an analyst at CryptoQuant, this large withdrawal created a signal for price increase for several reasons. First of all, it significantly reduces the available supply for immediate sale on platforms, which can limit downward pressure. Furthermore, the significant outflows of funds indicate the closing of leveraged positions and the potential shift to cold storage solutions, demonstrating long-term investment prospects. This volatility occurred as Ethereum went through a period of turmoil, with a 19.42% decrease in the past 30 days, and the price has remained below the symbolic $3,000 mark since February 3rd. Famous analyst Kyle Doops emphasizes that "such large fluctuations often signal a decrease in selling pressure and significant position closing," which can predict a trend reversal. Favorable context for the recovery of Ethereum The current environment appears to be particularly favorable for Ethereum. The World Liberty Financial cryptocurrency project, associated with Donald Trump, continues to strengthen its position in ETH, while Eric Trump has publicly expressed his optimism, stating on his X account on February 5th that "this is the perfect time to add ETH", thus stimulating investor interest. Furthermore, the Ethereum community is also showing signs of dynamism as 52% of validators support increasing the gas limit, a technical development that could enhance the network's capacity and potentially reduce transaction fees. The accumulation of positive technical indicators, along with favorable fundamental developments, suggests that the recent correction may be an attractive entry point for investors. In summary, the significant reduction in available supply on derivative platforms, combined with increasing interest from institutional investors, may drive the recovery of ETH price in the coming weeks. Some analysts even estimate that it could reach its previous all-time high of $4,878 achieved in 2021.