Quick take:
- The Open interest on Ethereum futures has just set a new all-time high of $2.21 Billion
- Ethereum has since broken the $700 price ceiling and looks ready to capture $750
- The CME Group will launch Ethereum futures in February and the event could provide fuel for an ETH rally
- Ethereum maintaining a value above $700 at the monthly and yearly close will be pivotal for ETH as it attempts to enter 4 digit territory
The open interest on Ethereum (ETH) futures has just set a new all-time high of $2.21 Billion. This is according to data from the team at Bybt.com who shared their observation via the following tweet.
#ETH Futures Open Interest breaks ATH $2.21 Billion. pic.twitter.com/trNy67C3fB
— Bybt (@bybt_com) December 28, 2020
Ethereum Breaks $700, Sets its Eyes on $750
The record-breaking open interest on Ethereum futures comes at a time when the value of ETH has zoomed past the $700 price ceiling. At the time of writing, Ethereum is trading at $738 in what looks like an attempt at breaking the $750 resistance level earlier identified by crypto analyst MagicPoopCannon.
Magic had in late November forecasted that Ethereum’s price would rapidly rise to $750 and possibly push higher to $830. Additionally, Magic also pointed out that if Ethereum’s momentum was maintained, its price could very well retest the 2018 all-time high of $1,400.
CME Group to Introduce Ethereum Futures in February
Ethereum’s bullish climb might receive some assistance in the form of the CME Group launching Ethereum futures on February 8th, 2021. Such an event will surely focus investor interest on Ethereum.
Going back in time, the CME group launching Bitcoin futures in 2017 resulted in BTC posting an all-time high of $20k on December 17th. Therefore, it is likely that Ethereum could witness a rally between now and February.
Ethereum’s Fate Lies in the Monthly and Yearly Close
However, Ethereum has one more hurdle to overcome in the form of the monthly and yearly close on December 31st. If Ethereum can maintain a value above $700 as 2020 comes to an end, its path towards 4 figure territory might be a smooth one. Furthermore, 2021 brings with it new expectations from crypto investors in the form of more gains in the markets and a world where a Coronavirus vaccine exists.