Market Analysis

Ethereum smashes past $600 as CME unveils ETH futures product

Ether (ETH) has followed the breakout above $20,000 for Bitcoin (BTC) on Dec. 16, boosted by some big news from the Chicago Mercantile Exchange (CME). The CME just announced that it will 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

ETH/USDT 4-hour chart. Source: TradingView

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.