Ethereum reclaims $600 price levels as the CME announces Ether futures citing “client demand.”
Ether (ETH) has followed the breakout above $20,000 for Bitcoin (BTC) on Dec. 17, boosted by some big news from the Chicago Mercantile Exchange (CME). The CME just announced that they’d be launching Ether futures in 2021.
“Based on increasing client demand and robust growth in our Bitcoin futures and options markets, we believe the addition of Ether futures will provide our clients with a valuable tool to trade and hedge this growing cryptocurrency,” said Tim McCourt, CME Group Global Head of Equity Index and Alternative Investment Products.
“Ethereum is the second-largest cryptocurrency by both market capitalization and daily volume. The introduction of listed Ether futures to our time-tested, regulated CME Group derivatives marketplace will help to create a forward curve so Ethereum market participants can better manage price risk.”
Such news is an extremely bullish event for the market’s maturity as it opens the gates for institutions and other parties to trade and invest in cryptocurrencies outside of Bitcoin. Notably, BTC futures launched exactly three years ago at the previous all-time high price in December 2017.
Ether’s price is up by 7% in the past 24 hours and is currently aiming to make a new yearly high.
Ether testing the resistance zone for the fourth time
Ether is showing significant strength in recent months as it’s testing the resistance for the fourth time. This strength is partly being fueled by Bitcoin’s strong movements, as that one just broke the all-time high.
However, the chart itself is shouting for more upside due to recent developments.
First of all, the $480 area had to be tested once and that held as a support zone, after which a strong bounce towards $630 occurred. This resistance zone failed to break, which resulted in finding another support zone.
Similarly, with Bitcoin, the support was found through a double bottom construction with bullish divergences. In the case of Ether, this support was found at $530, which is another higher low as a result.
All those higher lows and renewed momentum are resulting in the fourth test of the resistance zone. Most likely, the previous tests have made this resistance weaker absorbing the selling volume so a breakout is all but guaranteed, particularly as Bitcoin has already done so. Therefore, ETH will likely hit a new yearly high if Bitcoin consolidates and doesn’t make any sudden movements.
Could Ether run to $1,000+ in the coming year?
Ether above $1,000 is a likely outcome if ETH sustains the current momentum, as the chart shows. However, if Bitcoin makes a fake-out above $20,000 and drops back in the range, a correction toward $430-470 would still be a very bullish outcome for Ether.
In that perspective, the next impulse wave is most likely going to bring Ether towards the region of $800-850, while even $1,150-1,200 is a possibility. The latter depends on the strength of the markets.
However, Ether showed that it broke the accumulation range back in November, after which a new higher high was made. Since this higher high, the recent resistance at $300 flipped for support, which resulted in the current impulse move. The primary question is whether this impulse wave will top out soon or whether it’s going to continue to $850.
ETH/BTC pair turns bullish
Ether’s BTC pair is looking bullish, as it broke through the crucial resistance of 0.025 sats earlier this year. This rally resulted in continuation towards the 0.04 sats resistance but failed to break through that zone in one-go.
However, it marked another higher low as the correction ended at the 0.025 sats area. The bottom of this correction was confirmed by a bullish divergence on the daily timeframe, which is frequently a strong signal for trend reversals.
Such higher lows are considered to be very bullish as they can open the floodgates to new higher highs and continuation of the uptrend. The USD chart is already making higher highs and higher lows, but the momentum is partly due to Bitcoin’s strength.
If the BTC pair of Ether could break above the 0.04 sats region, continuation is likely to occur toward the 0.055 and possibly 0.08 sats area. In that perspective, a very bullish 2021 is on the horizon for cryptocurrencies as a whole.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.
Source: , CoinTelegraph
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