Ethereum has returned to bullish territory following the launch of CME ETH futures on Feb. 8. The second-largest cryptocurrency by market cap surged past $1,800 for a new all-time high on Wednesday.
According to the team at Unfolded, a total of 388 contracts valued at roughly $34 million were traded on the first day of trading the Ethereum derivatives products.
The flow of funds has been unusually focused on Ethereum in recent days. With $190 million going into the digital asset. That represented 80% of the total $245 million that went into digital assets investment products.
“We believe investors are looking to diversify and are growing increasingly comfortable with Ethereum fundamentals”. Said James Butterfill, investment strategist at CoinShares.
Ethereum Inflows Reach $260 Million
Year-to-date flows for Ethereum has reached $260 million, compared to Bitcoin’s more than $2 billion. Despite the lower inflows into BTC, no profits have been taken off the table with investors preferring to buy and hold
Prior to the CME Ethereum futures going live, traders weren’t sure if ETH would enter a bear cycle. This transpired for Bitcoin in 2017 after its CME futures launched.
However, Ethereum’s $1,480 support held after electric vehicle giant Tesla announced that it had purchased $1.5 billion in Bitcoin last month. The development had a positive effect not just on the leading cryptocurrency, but altcoins as well.
In the wake of its recent gains, some macro analysts now believe Ethereum could hit the $2,000 mark. The team at Upblock explained how they came to this conclusion:
“ETH has been consistently making higher highs and pushing for new ATH levels to enter real parabolic price discovery. It has spent a lot of time in previous weeks fighting and consolidating at a certain key-level yet could secure a breakout.
“Looking at technical indicators such as the MKAST Algorithm. One can quickly identify a bullish condition due to extreme bullishness lately. The MKAST Index shows 13/15 points, which leaves enough space for another impulsive move, which could hit the “magical” $2000 mark.”