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On-chain data shows Ethereum has just witnessed its largest daily withdrawal in over a month, a sign that may turn out to be bullish for the asset’s price.
Ethereum Has Recently Seen Notable Exchange Outflows
As explained by the institutional DeFi solutions provider Sentora (formerly IntoTheBlock) in a new post on X, a large amount of Ethereum has left exchanges. The on-chain indicator of interest here is the “Exchange Netflow,” which measures the net amount of ETH entering into or exiting out of the wallets associated with centralized exchanges.
When the value of this metric is positive, it means the exchanges are receiving a net number of deposits. As one of the main reasons why investors deposit their tokens to these platforms is for selling-related purposes, this kind of trend can have a bearish implication for the ETH price.
On the other hand, the indicator being below zero suggests the exchange outflows outweigh the inflows. Such a trend can imply the holders are accumulating, which can naturally have a bullish effect on the asset.
Now, here is the chart shared by Sentora that shows the trend in the Ethereum Exchange Netflow over the past month:
As displayed in the above graph, the Ethereum Exchange Netflow has seen a sharp negative spike during the past day, which suggests the investors have withdrawn a significant amount of the cryptocurrency.
In total, the exchanges have handled net outflows of more than 140,000 ETH (worth about $390 million) with this withdrawal spree. This is the largest single-day exit that these platforms have faced in over a month.
These outflows have come as Ethereum has been attempting a breakout from its month-long range. As such, it’s possible that a portion of the large holders of the market have some level of confidence in this rally.
In some other news, the cash-margined Ethereum Futures Open Interest has set a new all-time high, as the on-chain analytics firm Glassnode has revealed in an X post.
The Futures Open Interest is an indicator that measures the total amount of positions related to Ethereum that are currently open on all derivatives platforms. Here, the ‘cash-margined’ Open Interest is of relevance, which includes all the contracts that have fiat/stablecoins as collateral.
From the chart, it’s apparent that this metric has recently seen some rapid growth and has achieved a new record of about $20 billion. “Despite a slight pullback from the $2.8K levels, leverage continues to build as traders load up using stablecoins,” notes Glassnode.
ETH Price
Ethereum crossed beyond the $2,800 level earlier, but it appears it has seen a setback as its price is back at $2,750.
