Ethereum (ETH) will trade above the $4,400 price mark, following a rather eventful market week. CoinMarketCap data reports that AltCoin notched up a netweekly gain of 4.21%, but a sharp pullback of 7.14% weakened emotions towards the weekend, introducing a more cautious undertone. As ETH is currently integrated in lateral ranges, Crypto analyst Amr Taha has used recent exchange flows and futures market activities to outline both short-term and long-term market outlook.
Bearish Funding Rates vs. Bullish On-Chain Trends: Ethereum at Crossroads
In a recent Quicktake post on Cryptoquant, Taha offers valuable insight into Ethereum’s price trajectory as both futures market positioning and exchange balances have undergone significant changes. In studying recent developments in the derivatives market, crypto experts have observed a 29% decrease in open profits over the past two days, suggesting that traders are rapidly closing or liquidating amid the market turbulence after falling from over $4,700 to below $4,400 in ETH prices.
In addition to the bearish atmosphere, the persistent futures funding rate has been turned negative in major exchanges. Negative funding rates occur when short positions dominate. In other words, traders are paying to maintain their bearish bets. While this reflects general pessimism, Amr Tah says that history shows that such extremes are often in line with the often sold state, indicating that other bullish catalysts could precede the rebound.
Within this derivative market situation, spot market data draws a different picture. Recently, Taha explained that 200,000 ETH, worth around $888 million, has withdrawn from the major centralized exchange. Coinbase saw a leak of 128,000 ETH, while Binance recorded 72,000 ETH leaving the platform.
In general, large-scale exchange withdrawals are often interpreted as bullish signals. When investors remove funds from trading platforms, they are usually moved to a cold storage wallet for multiple reasons, including long-term holdings and staking. Institutions may also move assets off the exchange and perform over-the-counter (OTC) transactions.
This double tale, bearish-derived activity and bullish spot outflow, underscores Ethereum’s complex, short-term outlook. On the one hand, negative funding rates and collapsed open interest indicate traders are cautious and expect even more negative aspects in the short term. Meanwhile, reducing the exchange balance creates conditions that reduce immediate sales pressure and support strong price ranges.
Interestingly, Amr Taha points out that a similar wave of ETH withdrawal from exchange precedes a notable rally, as the decline in exchange liquidity strengthens supply.
ETH Price Overview
At the press conference, Ethereum traded at $4,446, reflecting an increase of 0.19% over the past day. In particular, investors’ attention remains large and still at a support level of 4,400 in future sessions. A critical bounce can test the view that Ethereum is on sale, but persistent debilitating could retest zones with low ETH before potential recovery.
Economic Times featured images, TradingView charts
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