December 6, 2022

Ethereum Booms in Anticipation of CME’s ETH Futures Launch

2 min read

Ethereum is going through an impressive bull rally sustained by mounting buy orders from retail and institutional financiers.

ETH Futures on CME Incoming

Interest in Ethereum mounts as the world’s biggest financial derivatives exchange, CME Group, is arranged to launch ETH futures on Feb. 8.

The brand-new cash-settled contracts will provide institutional investors exposure to the digital asset on a 50:1 ratio, based on CME’s CF Ether-Dollar Reference Rate. According to the official statement, the derivative item will be open to trade in between 18:00 to 17:00 ET from Sunday to Friday.

Given the significance of the event, Grayscale is preparing for a spike in volatility.

The cryptocurrency asset management company reopened its Ethereum Trust to accredited investors and closed a deal to buy more than $76 million worth of ETH. Grayscale now holds more than 3 million Ether, which deserves approximately $4.60 billion.

The significant spike in buying pressure appears to have had an essential influence on Ethereum’s price, pressing it to brand-new all-time highs.

Ethereum Targets $2,000

Even though Ether was able to increase to a record high of $1,767 on Feb. 5, its uptrend appears far from over.

The second-largest cryptocurrency by market capitalization recently broke out of a rising triangle where it had been contained over the past three weeks. Based upon the height of the triangle’s y-axis, Ethereum could rise another 13% to hit a target of almost $2,000.

Ethereum US dollar price chart
ETH/USD on TradingView IntoTheBlock’s In/Out of

the cash Around Price(IOMAP)model suggests that the bullish outlook will dominate as long as Ethereum continues to trade above the$1,560- $1,630 demand barrier. Failing to do so might set off a spike in offering pressure as more than 200,000 addresses will be required to sell their holdings to avoid sustaining considerable losses.

In/Out of the Money Around Price by IntoTheBlock
In/Out of the cash Around Price by IntoTheBlock If a & ldquo; buy the report, sell the news & rdquo; phenomenon was to happen, a sell-off may press Ethereum to look for support around the rising triangle’s x-axis at $1,440.

Disclosure: At the time of writing, this author owned Bitcoin and Ethereum.