- The CME group’s Micro Ether futures exploded in popularity; over 100,000 contracts were traded in two weeks.
- Proponents expect a rise in futures activity once Ethereum completes its merge and transitions to the Proof-of-stake consensus mechanism.
- Analysts await further activity in the Ethereum price chart before predicting a breakout or breakdown in the short term.
Micro Ether contracts on CME are off to a slow start compared to Bitcoin micro futures. However, derivatives traders have shown interest in the offering to hedge their exposure to Ethereum.
Ethereum Micro futures contract trades hit a milestone on CME
Two weeks ago, the Chicago Mercantile Exchange (CME) launched micro Ether contracts. The offering has exchanged hands 100,000 times until now. Despite a slow start, the offering has noted a spike in activity over the past two weeks.
The offering is a tenth of the size of the underlying asset, Ethereum, which makes it lucrative for investors. Proponents expect activity in micro Ethereum futures to pick up in the coming months as investors shift focus to Ethereum’s upgrade to ETH2.0.
Ethereum emerged as a deflationary asset since implementing the burn policy in the altcoin. This has fueled the altcoin’s popularity among investors across exchanges.
Tim McCourt, the CME Group’s Global Head of Equity Index, said,
Participation in our Micro Ether futures contract has grown rapidly since its launch two weeks ago, and we are encouraged by the strong customer adoption and support thus far.
Analysts have evaluated the Ethereum price chart and predicted that the altcoin could move in either direction. The altcoin is currently at a make-or-break point. @EzyBitcoin, a cryptocurrency analyst, recently tweeted:
$ETH There is no space left anymore. Please be aware market's volatility. Breakout or breakdown, tomorrow we will know! https://t.co/3zucPzakvT pic.twitter.com/v2aKOeTaHa
— Ezy Bitcoin (@EzyBitcoin) December 22, 2021
FXStreet analysts have predicted that if Ethereum reclaims $4,200 as support, it could resume its uptrend and continue the price rally.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Celebrity meme coins controversy continues amid Pump.fun revenue dominance
Pump.fun outperformed the Ethereum blockchain on Tuesday after raking in $1.99 million. Following this achievement, a meme coin based on actress Sydney Sweeney was the subject of controversy after its developers dumped their bags on investors.
PEPE's on-chain metrics indicate potential rally after weeks of silence
PEPE has struggled to see any significant price move after reaching an all-time high in May. Increased adoption rate and low MVRV ratio indicate a bullish run may be on the horizon. A single PEPE outflow from Binance worth $14.7 million gives credence to signs of bullish expectation.
Ethereum has failed to overcome key resistance despite bullish sentiment surrounding ETH ETF
Ethereum (ETH) is down more than 1.4% on Tuesday following another ETH sale from the Ethereum Foundation. Meanwhile, crypto exchange Gemini's recent report reveals that ETH ETF could see about $5 billion in net inflows within six months of launch.
Crypto community blasts Polkadot following report of treasury spending
Polkadot reports $87 million of treasury spending during H1. Crypto community members expressed harsh feelings toward the DOT team's high spending. DOT is up more than 2% in the past 24 hours but risks correction following the report.
Bitcoin: BTC price correction could end in July, according to seasonal data
Bitcoin (BTC) price appears poised for a decline this week, influenced by slight outflows in US spot ETFs, selling activity among BTC miners, and a combined transfer of 4,690.28 BTC to centralized exchanges by the US and German governments.