Ethereum has experienced the doldrums recently. Bitcoin has laid down all the moves more often than not boosting crypto markets and increasing its own dominance mainly at the expense of the higher cap altcoins including Ethereum and XRP. That all shifted today when ETH at last got some good fundamentals to send it rising 12 percent.
CTFC Ready For ETH Futures
Based on an exclusive from CoinDesk, the US Commodity Futures Trading Commission (CFTC) is ready to take into consideration an Ethereum futures contract providing it fulfills their criteria. The outlet cited an undisclosed senior official who stated;
“I think we can get comfortable with an ether derivative being under our jurisdiction. We don’t do bold pronouncements, what we do is we look at applications before us,”
As soon as Bitcoin futures were authorized in December 2017 both exchanges, CME and CBOE, where overcome with demand. A similar Ethereum based product will also open up the doors for institutional interest however futures do not permit direct investment in the asset, merely a way to bet on its future price.
ETH is rather low right now and has been for quite a few months, lulling under $200 since November last year. Long would be the obvious choice for any futures contract based upon ETH.
The CFTC first eyed Ethereum in December when it released a ‘Request For Input' wanting further details on the technology and is consensus model. Matching up to Bitcoin, one leading economist with the regulator said that “a one-size fits all approach to crypto was not appropriate and we needed to know more.”
Where Next For ETH?
Ethereum prices responded immediately and are presently up 12 percent on the day rising from $160 to $180. Daily volume has ramped up to surpass $8 billion and ETH is now back at levels during the initial surge in early April.
There are solid signals for more upsides as ETH is currently above $177 resistance at the 50 day exponential moving average. A MACD crossover has also just occurred and analysts are taking a look at a push to $190 or even back to $200 if the momentum goes on;
#ETH setup for a continued run as it holds above the 50 EMA at $177. Next resistance levels are $190 and $200. pic.twitter.com/ApkOAuUijK
— Formerly ScienceGuy9489 (@Etherdamus) May 7, 2019
The $160 range has seen firm support several times in April and it has been bearish for some time in spite of subtle approval from influencers that include Elon Musk and global giant itself, Amazon.
Ethereum has ultimately discovered the fundamentals it really needed to push prices higher and jolt the remnant crypto winter ice off. Since the beginning of 2019 ETH has made more than 34 percent but compared to others, its performance has been lack luster to say the least. Bitcoin on the other hand has made over 50 percent in the exact same period and Litecoin has cranked up over 150 percent gains since the beginning of the year.
Ethereum has a good deal of catching up to do but today's inertia may be the catalyst required to push it higher still.
Image from Shutterstock
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