- The crypto community awaits the launch of CME Ether futures on February 8.
- The derivatives are anticipated to be a game-changer for Ethereum amid the new record high.
- Technicals and on-chain metrics suggest that Ethereum is poised to rally to a new all-time high of around $1,700.
Ethereum hit a new all-time high at $1,446 on Tuesday, bringing back attention to the altcoins. Intriguingly, the majestic price action comes two weeks before the Chicago Mercantile Exchange (CME) launches Ethereum futures. Analysts and speculators believe that this launch is going to be significantly bullish for Ethereum.
Ethereum prepares for liftoff to $1,700 ahead of the CME futures launch
The Ethereum CME futures launch will occur on February 8 and aims to empower investors with proper risk management. The derivatives have been "developed by the leading, most diverse, and regulated marketplace" and home to the renowned Bitcoin futures and options.
The CME Ether futures will be cash-settled, meaning that they will be paid in cash and not the underlying asset. According to the prediction made in December, for some analysts like Spencer Noon, ETH futures were long overdue.
CME launched Bitcoin futures in 2017 amid the bull cycle that saw the price close in on $20,000. However, the price action was not as remarkable as the 19% spike to $19,016 following CBOE Bitcoin futures' debut, just seven days earlier. Although investors expected a significant move in Bitcoin price, the derivatives' launch on CME only pushed Bitcoin to $19,932 (former 2017 all-time).
BTC/USD 4-hour chart
On the contrary, the launch of Ethereum is the only major event in the ongoing bull unlikely to be diffused. Simultaneously, Ethereum has already broken out to a new all-time high and currently receives more investors' attention.
According to David Grider, an analyst at Fundstrat Global Advisors, Ethereum can hit $10,500 by the end of 2021. The medium-term technical outlook points to highs of $3,000, as explained with on-chain metrics.
In the meantime, Ethereum has retreated from the newly established all-time high in search of support at a higher low. A recent breakout above an ascending triangle stalled at $1,446. Ether appears to have tested the x-axis of the triangle twice, but its upside has been limited below $1,400.
The initial breakout above the pattern is still viable and impactful as long as the hypotenuse holds firmly. Besides, Ethereum is in a safe zone if it maintains in the region between $1,200 and $1,300. On the upside, the enormous altcoin eyes gain to $1,700 before launching the futures product on CME.
ETH/USD 4-hour chart
On the other hand, IntoTheBlock's IOMAP model reveals that Ethereum has a relatively clear path to $1,400. However, attention must be channeled between $1,311 and $1,326, where roughly 221,000 addresses had previously purchased nearly 2 million ETH. On breaking above this area, Ethereum may rally to $1,400 first, then complete the leg up to $1,700.
Ethereum IOMAP chart
On the downside, the cryptoasset is sitting on an area with immense support, proposing that declines are unlikely in the short-term. The most robust support runs from $1,256 to $1,294. Here, roughly 123,000 addresses bought 6.6 million ETH. As long as this buyer congestion range remains intact, Ethereum bulls will have ample time to prepare for the upswing to $1,700.
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
Top 3 Price Prediction Bitcoin, Ethereum, Ripple: BTC declines as resistance emerges near all-time high
Bitcoin and Ethereum are approaching their key support levels, and a sustained close below these marks could lead to further declines.
TON set to launch synthetic Bitcoin to boost its DeFi solutions
TON revealed its plan on Thursday to launch a synthetic Bitcoin token on its blockchain, allowing users to trade, stake, and earn yield using BTC. Following the announcement, TON is down over 3%.
Maker Price Forecast: MKR could stage 40% rally
MakerDAO is up 2% on Thursday and could be set for a 40% rise in the coming weeks if it successfully maintains an extended move above the descending trendline of a falling wedge. On-chain data also supports the bullish outlook after a four-month-long decline.
USDT market cap crosses $120 billion as stablecoins continue their uptrend
The stablecoin market cap continued its uptrend in October, characterized by USDT reaching a $120 billion market cap, according to a CCData report on Thursday. This indicates that investors are preparing liquidity to fuel more demand.
Bitcoin: New all-time high at $78,900 looks feasible
Bitcoin price declines over 2% this week, but the bounce from a key technical level on the weekly chart signals chances of hitting a new all-time high in the short term. US spot Bitcoin ETFs posted $596 million in inflows until Thursday despite the increased profit-taking activity.
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.