The price of Ethereum went past $730 during a strong and massive overnight rally. moving against Bitcoin. This price has surged this much for the 1st time since 2018 May. Following the breakout of ETH, there has been optimism among the traders regarding the cryptocurrency’s trajectory in the short-term. There are primarily two factors behind the strong rally of Ether: the futures listing of Ether in Jan 2021 and a market structure that is both strong and technical.
Ethereum Continues Witnessing The Pattern Of “Higher High”
Inside technical analysis, this pattern of higher high indicates a strong momentum as it reveals that every new and upcoming peak appears higher than previous peaks. Ethereum has constantly rallied across the last week, sustaining its formation of higher high. Scott Melker, a Cryptocurrency trader said that this appears to be an endless and infinite series of higher lows and higher highs, with the recent low being confirmed by the new higher high.
Since Bitcoin went past $20,000, Ether has stagnated against BTC. Therefore for Ethereum to witness a new rally, it must break out against Bitcoin. ETH has already started to show some profits against Bitcoin, which is supposed to create new demand for ETH. Santiment analysts have stated that the supply to exchanges is declining and the miner balances of ETH are at its 2-year low. The 2 data points when combined indicate a major drop in ETH’s selling pressure.
Meanwhile, the CME futures will launch in the next 43 days.CME appears to be the biggest futures exchange platform for Bitcoin when measured in open interest, according to Bybt.com data. Open interest is the total capital that is getting traded inside the exchange. On December 28, the open interest of the futures exchange of Bitcoin stands at more than $1.67 bn. Some analysts think that Bitcoin’s institutional demand will spill into Ethereum by 2021.