- Cryptocurrency exchanges hold 11.8% of Ethereum’s circulating supply after seven days of consecutive outflows.
- Amidst brewing supply shortages, the CME Group has announced plans to launch Micro Ethereum Options.
- Ethereum price crossed $3,000 for the first time since February 17, posting 14% gains over the past week.
- Analysts have set a target of $3,134 for Ethereum price, predicting pullback before the altcoin resumes rally.
Ethereum supply on exchanges is on a downward trend after days of consecutive outflows. Amidst the brewing Ethereum supply shortage, analysts have predicted a rally in the altcoin.
CME Group’s Micro Ethereum options offer investors smaller sizing
The Chicago Mercantile Exchange (CME) Group currently offers investors Ethereum futures contracts and Micro Ethereum futures. The Group has revealed plans to introduce smaller sizing for investors with its Micro Ethereum options.
The Group previously launched derivative instruments underlying Ethereum in December 2021. Following the launch, investors have a rising demand for Ethereum futures.
The CME Group is the world’s largest exchange by futures and options daily volume. Therefore, the addition of another offering to diversify the CME Group’s portfolio could attract investors to the platform. The exchange has announced the launch of Micro Ethereum options on March 28, pending regulatory evaluation.
The timing of launch could be lucrative to traders as there is an Ethereum supply shortage brewing across exchanges. Crypto data intelligence platform IntoTheBlock has noted seven consecutive days of Ethereum outflows from crypto exchanges.
Exchanges now hold 11.8% of Ethereum’s circulating supply. Historically, a shortage in supply on exchanges has fueled a rally in the altcoin’s price. Ethereum price has crossed $3,000 and posted double-digit gains over the past week.
Analysts have evaluated the Ethereum price trend and predicted a continuation of the altcoin’s uptrend, setting a target of $3,134. @Pentosh1, a pseudonymous cryptocurrency analyst, has predicted a pull back before Ethereum price hits the target.
$ETH
— Pentoshi (@Pentosh1) February 28, 2022
Never bought back mine from 4100 despite having 2 shots at 2200 essentially. But will look to get it back here in the next 0-72 hours. I think a small pull back before push forward to 34xx is in the cards
Will update as we go pic.twitter.com/A6vVGTWlPg
FXStreet analysts believe that Ethereum is on its road to recovery. The analysts have noted bullish indicators in the Ethereum price trend and believe that $3,000 is a key level to watch. A breakout past $3,175 would confirm the Ethereum price rally. The target is set at $3,800 if the Ethereum price preserves its uptrend.
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
Is Altcoin Season here as Bitcoin reaches a new all-time high?
Bitcoin reaches a new all-time high of $98,384 on Thursday, with altcoins following the suit. Reports highlight that the recent surge in altcoins was fueled by the victory of crypto-friendly candidate Donal Trump in the US presidential election.
Shanghai court confirms legal recognition of crypto ownership
A Shanghai court has confirmed that owning digital assets, including Bitcoin, is legal under Chinese law. Judge Sun Jie of the Shanghai Songjiang People’s Court shared this opinion through the WeChat account of the Shanghai High People’s Court.
BTC hits an all-time high above $97,850, inches away from the $100K mark
Bitcoin hit a new all-time high of $97,852 on Thursday, and the technical outlook suggests a possible continuation of the rally to $100,000. BTC futures have surged past the $100,000 price mark on Deribit, and Lookonchain data shows whales are accumulating.
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange
Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.
Bitcoin: New high of $100K or correction to $78K?
Bitcoin surged to a new all-time high of $93,265 in the first half of the week, followed by a slight decline in the latter half. Reports highlight that Bitcoin’s current level is still not overvalued and could target levels above $100,000 in the coming weeks.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.