ethereum witnessed a surge in outflows from derivatives exchanges after its drop below the $2,200 mark on September 7.
According to CryptoQuant analyst Amr Taha, over 40,000 ethereum (eth), worth around $90 million, left derivatives exchanges over the weekend. The outflows began a few hours after the price of eth hit a local low of $2,172 on Saturday, September 7.
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The analyst argues that the increase in capital outflows could indicate less selling pressure, which could also reduce the “amounts of borrowing to open new short positions.”
According to data from Santiment, eth’s total open interest decreased by approximately $171 million on Sept. 6, to $4.78 billion. However, the asset’s open interest quickly recovered most of its losses and currently stands at $4.93 billion.
<img decoding="async" width="3840" height="1300" src="https://crypto.news/app/uploads/2024/09/ethereum–eth-13.44.13-09-Sep-2024.png” alt=”40,000 eth left derivatives exchanges, creating less selling pressure – 1″/>
ethereum is up 1.3% over the past 24 hours and is trading at $2,325 at the time of writing. Its daily trading volume is up 33% and reached $12.4 billion.
Data from the market intelligence platform shows that eth’s relative strength index is hovering around 34. The indicator shows that the second-largest cryptocurrency is oversold at this price level as FUD dominates the market.
Despite impressive eth outflows from derivatives exchanges, overall sentiment around ethereum remains negative, according to data from Santiment.
US-based eth spot exchange-traded funds also saw consecutive outflows last week. These investment products have seen net outflows of $568.5 million since their launch in July.
