Ethereum derivatives net flows fall to 18-month low, is this a bullish sign?

Ciaran Lyons, CoinTelegraph; Translated by Wuzhe, Jinse Finance The amount of Ethereum withdrawn from crypto derivative exchanges has reached the highest level since August 2023 - analysts interpret this as a bullish signal for Ethereum price. On February 6, the net Ethereum flow from crypto derivative exchanges was negative 300,000 ETH, equivalent to an outflow of around $817.2 million, with the trading price of ETH at $2,724 at the time of writing. The net Ethereum flow from crypto derivatives was -300,000 ETH. Source: CryptoQuant In a February 6 analyst report, CryptoQuant contributor Amr Taha said this is a bullish signal as traders are withdrawing their Ethereum from derivative exchanges (involving contracts to trade an asset at a predetermined price on a specific date between a buyer and a seller) meaning reduced selling pressure, closing leveraged positions, and potentially transferring ETH to cold wallets. Taha said the increased Ethereum withdrawn from derivative exchanges reduces the "immediately available supply for sale", making it more difficult for Ethereum prices to decline. Over the past 30 days, ETH has dropped 19.42%, and has remained below the psychologically important $3,000 price level since February 3. As of the time of writing, the Ethereum trading price is $2,720. Source: CoinMarketCap Taha added, "If demand remains stable or increases, prices will rise due to the reduced supply." Crypto commentator Kyle Doops said in a February 6 X post, "Moves like this usually mean less selling pressure and major position closures - typically a bullish signal." Just days ago, Donald Trump's son Eric Trump posted on X that "now is a good time to accumulate ETH." Previously, there have been increasing bullish catalysts for Ethereum, including the potential launch of an Ethereum staking ETF, and Donald Trump's World Liberty Financial crypto project continuing to increase its Ethereum holdings. ConsenSys founder Joe Lubin recently said ETF issuers hoping to offer staking funds expect to get regulatory approval soon. "We've been in discussions with ETF providers, and they've been working on this, so they expect to get approval quite soon," Lubin said.