ETHUSD Has Potential to Hit New Highs at 1900 , But Are Prices Too High for Some?
Institutional investors can now trade Ethereum, courtesy of the launch of the first-ever Ethereum futures by the CME Group. On debut day, Ether futures attracted a trading volume of $30 million.
Each Ether contract on Ether would feature 50 units of Ethereum, with a minimum trading volume of 5 contracts. That puts the minimum trading contract of Ethereum poised at just around $450,000 at current market prices. The earliest expiry is set to the end of March.
The launch of the Ether futures trading is sure to add more market depth and volume to the crypto ecosystem, which has seen a Lazarus-effect since late last year.
Ethereum smashed all-time highs a few days ago, and has peaked at 1839.00 after touching off this level in Wednesday’s trading to set a new record mark. However, a selloff is now underway and the ETHUSD pair is 3.43% lower on the day.
Technical Outlook for ETHUSD
Today’s drop could cause a selloff, especially if the active candle closes below yesterday’s open. This creates a bearish engulfing pattern at a top (upper border of the channel) thus presenting a huge potential for a corrective move to the south. This is accentuated if the pattern is followed by a bearish outside day candle. If this scenario plays out, a potential drop towards 1550.90 or 1484.25 could be on the cards.
On the flip side, resumption of the uptrend could follow a support bounce which propels ETHUSD’s price above 1839.00, targeting the upper channel border somewhere close to 1900.
ETH/USD Daily Chart