By Nermeen Nabil Khear 
The amount of Ether (ETH) withdrawn from crypto derivatives exchanges has surged to its highest level since August 2023, a development analysts interpret as a bullish sign for ETH’s price.
On February 6, Ether’s net outflows from derivatives exchanges reached 300,000 ETH, valued at approximately $817.2 million, with ETH trading at $2,724 at the time.
This movement suggests reduced selling pressure as traders close leveraged positions and move assets to cold storage, according to CryptoQuant analyst Amr Taha.
Ether Withdrawals from Derivatives Platforms Reduce Selling Pressure
Taha noted that when Ether is withdrawn from derivatives platforms, it decreases the immediate supply available for selling, making it more difficult for the price to drop.
“If demand remains stable or increases, price tends to rise due to lower available supply,” he explained.
ETH has faced a 19.42% decline over the past 30 days, struggling to reclaim the $3,000 psychological level since February 3.
However, market observers see the recent outflows as a potential catalyst for recovery.
Crypto analyst Kyle Doops echoed this sentiment, stating on X (formerly Twitter) that “big moves like this typically mean less selling pressure and major position closures—often a bullish signal.”
The shift comes amid increasing bullish sentiment for Ethereum, fueled by several factors. Eric Trump, son of U.S. President Donald Trump, recently posted on X, calling it “a great time to add ETH.”
Additionally, Trump’s World Liberty Financial crypto initiative has been steadily accumulating Ether, further signaling confidence in the asset.
Another key development is the potential approval of a staked Ether ETF.
Consensys founder Joe Lubin recently stated that ETF issuers are optimistic about regulatory approval for staking-based funds, suggesting that such products could be greenlit soon.
Buterin Unveils Leadership Overhaul at Ethereum Foundation
Last month, Ethereum co-founder Vitalik Buterin announced significant leadership changes at the Ethereum Foundation, aiming to prioritize technical expertise and strengthen collaboration with developers in the ecosystem.
The announcement, made on January 18 via an X post, outlined a vision to support decentralized application developers while upholding Ethereum’s core principles of decentralization, censorship resistance, and privacy.
Buterin emphasized that the Ethereum Foundation will avoid political lobbying or ideological shifts, maintaining its decentralized ethos.
The leadership shift follows a challenging year in 2024, during which the Foundation faced criticism over its spending practices, roadmap execution, and personnel policies.
A key turning point came in May 2024 when the Ethereum Foundation introduced a conflict-of-interest policy after several researchers, including Justin Drake and Dankrad Feist, accepted paid advisory roles at EigenLayer Foundation.
According to L2Beat, Ethereum now hosts 55 layer-2 rollups.
However, this proliferation raised concerns among stakeholders, who argued that layer-2 networks were cannibalizing revenue on Ethereum’s base layer.
The post Ether Outflows from Derivatives Exchanges Hit Highest Level Since August 2023, Signaling Bullish Trend appeared first on Cryptonews.
This articles is written by : Nermeen Nabil Khear Abdelmalak
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