CME Group is launching its highly anticipated Ethereum futures contract tomorrow. Early trade can be done today. The launch of CME Ethereum futures is thought to be the driving force behind ETH’s rise from about $ 600 in December 2020 to an all-time high of $ 1,759.

 

 

The current all-time high for Ethereum was the result of ETH breaking past the all-time high of $ 1,480 and the resistance zone between $ 1,400 and $ 1,500. This area will now be a support zone and once again an area to watch. This important support is also highlighted on the daily ETH / USDT chart below.

The daily Ethereum chart is a harbinger of short-term decline for ETH as will be announced.

To begin with, the daily trading volume is red and confirms this with the red Heiken Ashi candle. The daily MACD histograms are also short, indicating that uptake by the ETH bulls is declining. Second, the daily MFI and RSI of 64 and 69, respectively, point to an ongoing correction by Ethereum.

 

Will the fate of Ethereum and Bitcoin be the same?

Experienced Bitcoin and Ethereum traders are well aware that the launch of CME BTC futures on December 18, 2017 was responsible for the impressive rally of up to $ 20,000. The launch of Bitcoin futures that year kicked off a brutal bear cycle that would end a year later with $ 3,150 of BTC.

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Ethereum analysis: ETH goes to $ 1,300! Near the record

Therefore, once the CME ETH Futures is launched, Ethereum is unlikely to have a similar fate.

However, the opposite can of course also happen. Derivatives of the CME Group will provide ETH access to institutional investors who are busy collecting Ethereum at a record rate. An example of this is Grayscale Investments, which added 104,990 ETH to their bags in the last week alone. This was highlighted by the team at Bloqport in the following tweet.

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