Once again this year, the price of Ethereum reached a new all-time high, trading at $1,830 on Binance. Traders were clearly delighted by this new milestone but, at the same time, didn’t come as a surprise for many.
The CME listing, one of the main triggers for this run
It’s important to mention that the timing of the current ETH rally is not random, as it comes after the CME listing of the token. Add the fact that there’s also an unprecedented institutional demand for Ether – and cryptocurrencies, in general – and this entire run doesn’t sound that surprising.
In contrast, back in December 2017, following Bitcoin’s listing, its price crashed in just a few weeks, from $20,000 to around $6,000. And many traders expect to see the same thing in Ethereum’s case throughout the next weeks! On the other hand, this is pure speculation, as there’s no actual proof that the futures listing was the main cause of BTC’s plummet.
Can ETH go past $2,000?
Obviously, everybody is now curious to see if Ethereum has what it takes to reach what we can consider a psychological milestone. According to a note from CoinMetrics’ research team, ETH’s futures launch could indeed attract important inflows to ETHE (Grayscale Ethereum Trust).
If this can have an impact on the overall institutional appetite for ETH, it would be very possible to see both the short-term and long-term sentiment around the token rapidly improving.
“CME’s launch may potentially accelerate ETH inflows into Grayscale’s Ethereum Trust – investors can buy into the Grayscale Trust while simultaneously shorting ETH, remaining market neutral and pocketing the ETHE premium. Grayscale’s Ethereum trust does not currently have a method for withdrawing ETH so it effectively serves as a large token sink for ETH,” the researchers said.
Finally, as the ETH Futures volume keeps increasing, it simply confirms that more and more institutions are willing to invest big!