Key Points
Ethereum Outflows from Derivative Exchanges
On September 7th, Ethereum experienced significant outflows from derivative exchanges after its price fell below the $2,200 mark.
CryptoQuant analyst Amr Taha reported that more than 40,000 Ethereum (ETH), valued at approximately $90 million, were removed from derivative exchanges during the weekend.
The outflows began just a few hours after the ETH price hit a local low of $2,172 on Saturday, September 7th.
Taha suggests that the increased outflows might be an indication of eased selling pressure.
This could also result in a decrease in the “borrowing amounts for opening new short” positions.
According to data from Santiment, the total open interest in ETH dropped by about $171 million on September 6th, reaching $4.78 billion.
However, the asset’s open interest quickly recovered most of its losses and currently stands at $4.93 billion.
In the past 24 hours, Ethereum has increased by 1.3% and is presently trading at $2,325.
The daily trading volume has risen by 33%, reaching $12.4 billion.
Market intelligence platform data shows that the ETH Relative Strength Index is at 34.
This indicator suggests that the second-largest cryptocurrency is oversold at this price level as FUD dominates the market.
Despite the significant outflows from derivative exchanges, the overall sentiment around Ethereum remains negative, as per Santiment data.
Spot ETH exchange-traded funds in the U.S. also reported consecutive outflows last week.
Since their launch in July, these investment products have recorded $568.5 million in net outflows.