By Tobi Loba
Ethereum (ETH), the second-largest cryptocurrency by market cap, has been experiencing a massive positive price trend propelled by the mounting buy orders from retail and institutional investors, especially the upcoming launch of ETH Futures by the world’s largest financial derivatives exchange, CME Group.
The launch of ETH Futures by CME Group is slated for 8th February 2021. The new cash-settled contracts will offer institutional investors exposure to the cryptocurrency on a ratio of 50:1, based on CME’s CF ETH-Dollar Reference Rate.
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As reported by the firm via an official announcement, the derivative product will be opened to trade between 18:00 to 17:00 ET during the working days. Due to the significance of the event, Grayscale, the world’s largest crypto manager, is preparing for an increase in volatility.
Grayscale reopened its Ethereum Trust to accredited investors and closed a deal to buy over $76 million worth of ETH. Currently, the firm holds over 3 million ETH, which is worth relatively $4.6 billion at current prices.
The increase in buying pressure of Ethereum (ETH) has been aiding its price to hit new price all-time highs lately.
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Ethereum (ETH) Price Trends
Even though ETH managed to rise to a record high of $1,767 on 5th February, its massive upside trend seems far from over.
Ethereum (ETH) recently broke out of an ascending triangle where it had been contained over the past three weeks. Based on the height of the triangle’s y-axis, Ethereum could surge another 13% to hit a target of nearly $2,000.
IntoTheBlock’s In/Out of the Money Around Price (IOMAP) model suggests that the bullish outlook will prevail as long as Ethereum continues to trade above the $1,560-$1,630 demand barrier.
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Failure to maintain this level could trigger a spike in selling pressure as more than 200,000 addresses will be forced to sell their holdings to avoid incurring significant losses, which would result in a price correction.
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