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Bulls call for new ETH all-time high to $2000 as the second biggest cryptocurrency managed to reach $1700 as of late and traders assesses the limited supply against the hype surrounding the launch of ether futures on the Chicago Mercantile Exchange in a week so let’s read more in today’s ethereum news.
Ethereum reached $1700 for the first time in its existence after rallying for about a year which saw the price increase 1750% since last March. The gains seemed to be a part of the broader bullish trend in the market and boosted plenty of others like Uniswap, Aave, and Bitcoin to new all-time highs. The market interest surged as well after the institutional investors started pouring capital on the market because they believed the cryptocurrency will act as a hedge against inflation that was caused by the Federal Reserve policies and the US stimulus program.
Retail investors turned to BTC once again and upgraded their bets as an alternative cryptocurrency market while ETH benefited mostly because of the positive correlation with the top cryptocurrency. the flurry of fundamentals like Ethereum’s switch from proof-of-work to a proof of stake mechanism pushed the prices higher. As a result, the traders are showing more signs of becoming long-term investors and await the price of ETH to hit $2000 in the upcoming sessions. That seemed evident with reports of the huge ETH outflow from the crypto exchanges. As a result, there are now fewer tokens in circulation which causes a liquidity crisis while the demand is rising.
For the past few days, Grayscale investors added more Ethereum than Bitcoin.
Grayscale $ETH trust now holds $5 billion worth of Ethereum, 2.6% of the total supply. pic.twitter.com/ndBtXBg9ns
— unfolded. (@cryptounfolded) February 4, 2021
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Ethereum locked into Defi protocols while the investors were moving ETH into their own cold storage to keep it long-term according to Simon Peters who is an analyst at eToro:
“It’s clear from the price that this declining supply is quickly moving into prices. Since institutions are expected to increase their positions, we expect the price of ethereum to increase from here.”
In the meantime, CME’s decision to launch ETH futures on Monday is acting as a tailwind to the uptrend of the cryptocurrency. The listing of ETH futures on regulated exchanges will serve to boost the market structure by allowing investors to gain more exposure to the second cryptocurrency or to use it for hedging existing eth exposures. The bulls call for a new ATH still because the cryptocurrency has enough power to do it.
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