2025-02-07 02:00:14 by NewsBTC

Ethereum has continued to face headwinds, mirroring the broader downward trend in the global cryptocurrency market. The persistent market slump has made it challenging for ETH to sustain upward momentum, even as it attempts to recover from recent losses. Interestingly, it appears there might be some notable factors behind the scenes influencing Ethereum’s price movements, particularly the exchange netflows on derivative platforms. Ethereum Faces Record Outflow: Implications Amr Taha, a contributor on the CryptoQuant QuickTake platform, recently offered insights into the Ethereum market’s ongoing dynamics. In a detailed post on the QuickTake platform, Taha noted that Ethereum’s netflow on derivative exchanges dropped below -300,000 ETH for the first time since August 2023. This significant shift, according to Taha, holds potential implications for price direction and market structure. Ethereum netflow on derivative exchanges. | Source: CryptoQuantTaha outlined several key factors to consider when assessing the impact of ETH outflows on pricing. First, when large amounts of ETH leave derivative exchanges, it often signals that traders are either closing leveraged positions or transferring funds to cold storage. This reduction in available supply can alleviate selling pressure, creating conditions that are favorable for a price increase—provided demand remains stable or grows. However, the nature of these outflows can lead to short-term market volatility. If the withdrawals are driven by the liquidation of leveraged long positions, the market may experience a temporary reset. While this can dampen buying demand in the short term, it often results in a healthier and more balanced market structure over time. Current Liquidity Stance And Key Metrics to Watch Additionally, Taha highlighted the significance of liquidity conditions in the broader financial system. Using a metric known as Fed Net Liquidity—which subtracts the Treasury General Account (TGA) and Reverse Repo (RRP) from the Federal Reserve’s balance sheet—he pointed out that rising liquidity levels often have a bullish effect on risk assets. Fed Net Liquidity. | Source: CryptoQuantRecently, the metric increased from 5.85 trillion to 5.95 trillion, suggesting more capital is available to flow into markets such as cryptocurrency. Historically, higher net liquidity correlates with increased asset prices, potentially benefiting Ethereum’s outlook. Furthermore, one of the more immediate indicators to monitor according to Taha is Ethereum’s liquidation map. Taha observed that certain price levels might force short positions into capitulation if ETH continues to climb. This could serve as a trigger for further upward movement if market conditions remain favorable. Additionally, the trajectory of net liquidity will remain an essential factor, as its direction often signals the broader sentiment toward risk assets. ETH price is moving downwards on the 2-hour chart. Source: ETH/USDT on TradingView.comFeatured image created with DALL-E, Chart from TradingView Samuel Edyme Meet Samuel Edyme, Nickname - HIM-buktu. A web3 content writer, journalist, and aspiring trader, Edyme is as versatile as they come. With a knack for words and a nose for trends, he has penned pieces for numerous industry player, including AMBCrypto, Blockchain.News, and Blockchain Reporter, among others. Edyme’s foray into the crypto universe is nothing short of cinematic. His journey began not with a triumphant investment, but with a scam. Yes, a Ponzi scheme that used crypto as payment roped him in. Rather than retreating, he emerged wiser and more determined, channeling his experience into over three years of insightful market analysis. Before becoming the voice of reason in the crypto space, Edyme was the quintessential crypto degen. He aped into anything that promised a quick buck, anything ape-able, learning the ropes the hard way. These hands-on experience through major market events—like the Terra Luna crash, the wave of bankruptcies in crypto firms, the notorious FTX collapse, and even CZ’s arrest—has honed his keen sense of market dynamics. When he isn’t crafting engaging crypto content, you’ll find Edyme backtesting charts, studying both forex and synthetic indices. His dedication to mastering the art of trading is as relentless as his pursuit of the next big story. Away from his screens, he can be found in the gym, airpods in, working out and listening to his favorite artist, NF. Or maybe he’s catching some Z’s or scrolling through Elon Musk’s very own X platform—(oops, another screen activity, my bad…) Well, being an introvert, Edyme thrives in the digital realm, preferring online interaction over offline encounters—(don’t judge, that’s just how he is built). His determination is quite unwavering to be honest, and he embodies the philosophy of continuous improvement, or “kaizen,” striving to be 1% better every day. His mantras, “God knows best” and “Everything is still on track,” reflect his resilient outlook and how he lives his life. In a nutshell, Samuel Edyme was born efficient, driven by ambition, and perhaps a touch fierce. He’s neither artistic nor unrealistic, and certainly not chauvinistic. Think of him as Bruce Willis in a train wreck—unflappable. Edyme is like trading in your car for a jet—bold. He’s the guy who’d ask his boss for a pay cut just to prove a point—(uhhh…). He is like watching your kid take his first steps. Imagine Bill Gates struggling with rent—okay, maybe that’s a stretch, but you get the idea, yeah. Unbelievable? Yes. Inconceivable? Perhaps. Edyme sees himself as a fairly reasonable guy, albeit a bit stubborn. Normal to you is not to him. He is not the one to take the easy road, and why would he? That’s just not the way he roll. He has these favorite lyrics from NF’s “Clouds” that resonate deeply with him: “What you think's probably unfeasible, I've done already a hundredfold.” PS—Edyme is HIM. HIM-buktu. Him-mulation. Him-Kardashian. Himon and Pumba. He even had his DNA tested, and guess what? He’s 100% Him-alayan. Screw it, he ate the opp. Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.