Ethereum, the second biggest cryptocurrency, is seeing some interesting activity in its derivatives market. Basically, people are pulling their ETH out of these exchanges more than they’re putting it in.
What Does This Mean?
This means there’s less pressure to sell ETH. Why? Because people are holding onto their coins instead of selling them. This could mean a more stable price for ETH in the near future.
Also, people aren’t borrowing as much to short sell ETH. This means there’s less pressure to push the price down.
But Wait, ETH is Still Down!
Even though people are holding onto their ETH, the price is still down. It’s dropped 9.2% in the past week. A small price bump in the last day wasn’t enough to turn things around.
The trading volume for ETH hasn’t really changed either. It’s still stuck between $11 billion and $13 billion per day.
What’s Next for ETH?
One analyst thinks the price needs to drop below $2,000 before we can call it a bottom. So, it’s still too early to say what will happen next with ETH.
