Negative flows on derivative exchanges have exceeded 40,000 ETH. Analysts have put forward two different interpretations of this situation. The first interpretation is that negative flow, irrespective of its size, is healthy because withdrawal reduces selling pressure. The second interpretation is that the circulation is coming down to create scarcity, thereby pulling the price up. Suffice it to say, both interpretations are currently optimistic for the Ethereum token, according to analysts. According to the original report, the average price was around $2,270.
The decline, however, is pretty steep. An earlier record placed it at a negative 10,000. That dates back to September 6, 2024. On September 7, 2024, there was an outflow of over 40,000 tokens.
ETH is currently exchanging hands at $2,327.88, up 1.10% in the last 24 hours. Chances are that it will eventually rise with multiple upticks, aligning with the latest Ethereum price prediction. This will enable interested traders to take profits home. It ultimately translates to the requirement of holding on to the token for a long time. It aligns with near-term predictions, which project a growth of 7.38% in the next 30 days. That will take the value to almost $2,479.21.
An alternate possibility is that the token will surpass $2,700 by the end of September 2024. This is based on several factors often covered in the media, including rate cuts, recession concerns, and political scenarios. Achieving that mark will pave the way for Ether to target the much-awaited high of $4,000 by the year-end. Ongoing trends make it a far-fetched possibility, but it is still one.
Negative flows on derivative exchanges might have also mirrored the sentiment of Spot Ether ETF. It recorded outflows constantly in the last week, ending with $6 million on September 6, 2024. The total net outflow for Spot Ether ETF currently stands at $568.5 million. Although BlackRock currently has a net worth of over $1 billion, it could potentially lose the soft spot if it continues to lose an additional $17.3 million in the future.
This is not the first time that ETH has seen negative flows on derivative exchanges. The last time it fell was on August 18, 2024. There were almost 70,000 negative flows, with ETH hovering around $2.15k. It bounced back on the next day, but it took around 20 days to reintroduce that sentiment. The last time it happened was during the phase when ETH’s price was performing decently. This phase is a little different because the price is also down amid speculation of surges later this year.
ETH’s price has not made significant advancements. In terms of flows, movements may remain steady or return to higher ground. It was only on September 5, 2024, that $ETH had a positive flow of more than 60,000.