Ethereum Derivatives Net Flow Hits 18-Month Low: A Bullish Signal?

The Ethereum derivatives markets have just recorded their largest outflow of ETH since August 2023, with over 300,000 ETH withdrawn from exchange platforms on February 6, 2025. This massive movement, totaling approximately $817.2 million, occurs against a backdrop of heightened market volatility.

A strong signal for the derivatives market

On February 6, the crypto derivatives platforms recorded a record negative net flow of 300,000 ETH, representing about $817 million. According to Amr Taha, an analyst at CryptoQuant, this massive withdrawal constitutes a bullish signal for several reasons.

First, it significantly reduces the supply immediately available for sale on the platforms, which could limit downward pressure. Moreover, these significant outflows suggest a closing of leveraged positions and a possible transfer to cold storage solutions, indicating a long-term investment perspective.

This dynamic occurs as Ethereum goes through a turbulent period, with a 19.42% decline over the past 30 days and a price remaining below the symbolic $3,000 mark since February 3.

The renowned analyst Kyle Doops highlights that “movements of such magnitude generally signal a reduction in selling pressure and significant position closures”, which could foresee a trend reversal.

A favorable context for an Ethereum recovery

The current environment appears particularly favorable for Ethereum. The crypto project World Liberty Financial, associated with Donald Trump, continues to increase its positions in ETH, while Eric Trump has publicly expressed his optimism, stating on February 5 on his X account that “this is the perfect time to add ETH”, thus stimulating investor interest.

Additionally, the Ethereum community is also showing signs of dynamism with 52% of validators supporting a gas limit increase, a technical evolution that could enhance the network’s capacity and potentially reduce transaction fees.

The accumulation of positive technical indicators, coupled with favorable fundamental developments, suggests that the recent correction could present an attractive entry point for investors.

In summary, the significant reduction of the supply available on derivatives platforms, combined with the growing interest from institutional investors, could catalyze a recovery in ETH prices in the coming weeks. Some analysts even estimate that it could reclaim its former all-time high of $4,878 reached in 2021.