- It is a bullish day for the ETH/USD pair.
- Because the Chicago Mercantile Exchange (CME) announced the launch of Micro Ether futures in December.
- ETH secured a new all-time high.
PUNE (Coinchapter.com) – Ethereum bulls just got a booster dose from the largest financial derivative markets in the world. The Chicago Mercantile Exchange (CME) announced on Tuesday, that it will launch Micro Ether Futures on December 6, 2021.
CME’s latest move comes after the firm first started offering ETH futures contracts in February 2021. Ether prices topped $1,800 which was a new all-time high for the second-largest cryptocurrency then. A similar fate awaits Ethereum’s native blockchain asset now.
Hello Micro Ether Futures
According to the official announcement, the contract size of Micro Ether futures will be one-tenth the value of 1 ETH. The Chicago, Illinois-based company claims that the same will make Ether futures trading efficient and cost-effective for both institutional and retail traders.
In detail, a smaller contract size will allow for precise ETH futures trades. The CME intends to open up the Ether derivatives market to a much larger segment of traders and attributes the sporadic rise of ETH/USD spot rates for the move.
“At the same time, the price of ether has more than doubled since these contracts were introduced, creating demand for a micro-sized contract to make this market even more accessible to a broader range of participants. Micro Ether futures will offer even more choice and precision in how they trade Ether futures in a transparent, regulated and efficient manner at CME Group.”said Tim McCourt, CME Group Global Head of Equity Index and Alternative Investment Products
The upcoming micro Ether futures contracts will be cash-settled and join CME’s growing suite of cryptocurrency derivatives. CME launched Micro futures trading support for Bitcoin back in May. The product has logged 2.5 million trades to date.
As for ETH futures, since launch, traders have exchanged hands with more than 675,500 contracts (equivalent to about 33.8 million Ether).
New All-time High
CME announcing Micro Ether futures for launch in December propelled the ETH/USD pair to a new all-time high of $4,500. Bullish sentiment was on since Monday. But today’s news led to the pair printing a vertical rally, which doesn’t show signs of abating anytime soon.
Also, the persistent burning of ETH tokens further fuelled the top altcoin’s bullish quotient. Data shows that more Ethers were sent to inaccessible addresses than were produced during the last week. As a result, a massive supply crunch against rising demand caused ETH/USD prices to rise.
Ongoing buying pressure pushed Ether’s relative strength index (RSI) up towards 65. There’s room for much more growth in ETH/USD’s bullish strength. Owing to a flurry of long positions, the leading smart contract asset could rally up to $6,500.
Sellers will eventually show up, but for now, the skies are clear.