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Ethereum Price Analysis: ETH Crosses $1,700 As CME Launches Futures

3 Min Read
Last Updated July 23rd 2021

Daily Ethereum ETH Price Forecast
  • Ethereum price reached an all-time high of $1,770.59 this Monday.
  • ETH has overcome the sell sign in the TD indicator.

This Monday, news came out that the Chicago Mercantile Exchange – the largest derivatives exchange in the world – had launched the much anticipated CME futures. Following that, the price jumped from $1,610 and reached its all-time high of $1,770.59 and then consolidated around $1,725.

 

Ethereum Price Recovers After Price Dip

This Saturday, the Ethereum price flashed a sell signal in the form of a green-nine candlestick, wherein it dropped from $1,720 to $1,610. However, following the news about the CME, the price jumped to $1,725. Do note that the relative strength index (RSI) hasn’t yet entered the overbought zone, which tells us that ETH still has more space to grow.

eth/usd daily chart 020921

Image: ETH/USD daily

On the downside, Ethereum price has one strong support barrier at $1,630. Previously, at this zone,17,000 addresses had purchased 7.85 million ETH tokens. This barrier seems robust enough to absorb a lot of selling pressure.

eth/usd volume chart 020921

Image: IntoTheBlock

The 4-hour Ethereum price chart has flashed three bullish signals:

  1. The 20-bar SMA has flipped from resistance to support.
  2. The parabolic SAR has reversed from beamish to bullish.
  3. The MACD shows increasing bullish market momentum.

eth/usd 4-hourt chart 020921

Image: ETH/USD 4-hour

 

CME Now Trades Ethereum Futures

The Chicago Mercantile Exchange (CME) has recently launched its futures contracts for Ether (ETH). These futures trading went live just a few days ago, with the February contract registering an opening price of $1,669.75. CME has traded 77 contracts so far, with most activity centered on the February expiry. 

Futures contracts are legal agreements to purchase or sell a crypto asset at a predetermined price for a later date. CME’s ETH futures are cash-settled and based on the exchange’s reference rate, which includes data from major crypto exchanges such as Bitstamp, Coinbase, and Gemini itBit, and Kraken. 

The world’s first regulated ETH futures product may attract more institutional demand for the digital asset, boosting the recent price rally. Qiao Wang, a cryptocurrency researcher and co-founder of Messari, took to Twitter to share his thoughts on the news.

“The earliest traditional financial institutions that bought BTC are already looking at ETH, if not bought already. And rightfully so. The most used cryptonetwork + future of finance + a potential deflationary monetary policy narrative make it extremely compelling.

And LOL @ those who think CME futures will bring ETH into a 3-year bear market. This will be the worst trade of your life.”

Wang has predicted ETH rallying to $5,000 and higher in the long run. The cryptocurrency has more than tripled in value since the CME first announced its plans to list futures contracts on December 16th.

 

Ethereum Price Is Expected To Reach These Levels

The Ethereum price is expected to reach the $1,800-level as multiple indicators flash positive signs.

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