The price of Ether (ETH) exceeded $ 730 for the first time since May 2018. After the outbreak of ETH, traders are becoming more optimistic on their short-term path.
There are two main factors behind the strong rally at ETH– A strong technical market structure and CME’s Ethereum futures price in January 2021.
The Ethereum continues to show the “Highest Altitude” pattern
In technical analysis A higher high pattern often indicates a strong dynamic because it shows that each new peak is higher than the previous ceiling.
Ether has rallied steadily over the past week, holding the formation higher. The cryptocurrency trader Scott Melker said::
“Endless series of higher highs and lows, with the most recent low confirmed by a new higher high. I consider this pattern to be the “stairs to heaven”.
December 28th, Michael van de Poppe, a full-time trader on the Amsterdam Stock Exchange, said so too ETH is likely to hit $ 1200 and $ 1300 when it is above $ 470. Wrote::
Overall, #Ethereum still has a very bullish outlook as it consistently hits higher highs and lows. That hasn’t changed. As long as $ 470 holds, the next rally will push markets towards $ 1,200-1,300 or a new ATH in the first quarter of 2021. “
Since Bitcoin has surpassed its previous all-time high at around $ 20,000, The ETH has stalled compared to Bitcoin. So that Ether can see another manifestation, A breakout against Bitcoin is crucial.
On the daily chart, ETH has started showing some gains over Bitcoinwhat could drive the new demand for ether.
Santiment analysts said that ETH miners’ balances are at a two-year low and that supply on the exchanges is also falling.
The combination of the colon indicates this The selling pressure on ETH is falling. she they declared::
“On what is usually the slowest trading day of the week, #Ethereum has reached $ 700 for #altcoins on a big Sunday for the first time since May 19, 2018, for #altcoins at least 2 years and delivery to exchanges at least 1.5 years. Both great validators. “
Meanwhile, Futures on the Chicago Mercantile Exchange (CME) are scheduled to start in 43 days. According to Bybt.com CME is already the largest Bitcoin futures market in terms of open interest.
The term open interest refers to the total amount of capital traded on exchanges. From December 28th CME Bitcoin Futures Open Interest is hovering around $ 1.67 billion.
Some analysts believe that institutional demand for Bitcoin will spread to Ethereum in 2021.
When that happens, CME’s Ethereum futures exchange is likely to see significant growth in day trading and open interest. Ryan Watkins, Messari researchers, said:
Forecast for 2021: Institutes will start buying ETH in 2021. Once they accept that Bitcoin can be valuable, they will open up to the possibility that other crypto assets could also be valuable. From there, it’s a much easier jump from $ BTC to $ ETH. “