In what is yet another critical landmark for Ethereum, the world’s largest altcoin, ETH has now broken the much-anticipated $2000-level across major crypto exchanges. Interestingly, last week, Ethereum’s market cap also surpassed the $200 billion mark. At press time, ETH traded at $2000.6, with cryptocurrency recording a 4.69 percent rise over the last 24 hours.
Unsurprisingly, the altcoin rally also coincided with Bitcoin’s own price chart success, with the world’s largest cryptocurrency rising past $52,000 on the back of a few developments; namely, Tesla’s $1.5 billion purchase of Bitcoin and MicroStrategy’s plan to buy even more BTC. Grayscale’s purchase of almost 53,000 ETH on 13 February may have also played a part.
Although the Bitcoin connection of Ethereum has definitely played its part, the ATH on Ether charts can be attributed to the recent launch of Ether Futures on the CME. According to Tim McCourt, Managing Director and Global Head of Equity Products, CME’s Ether Futures product has received an overwhelming response. Over 371 contracts were traded on average for the first week alone, with an average of $34 million in daily volumes.
Ergo, it’s no surprise that ETH analysts remain bullish and expect the crypto-asset rally to continue, particularly since the launch of CME could add more institutional players to the Ether market.
Meanwhile, CoinShares strategists assume that besides Bitcoin, Ethereum has recently become the most common asset for institutional investors. In addition, Messari co-founder Qiao Wang projected that ETH had the potential to reach $5,000 and that there was “absolutely no reason” for traders to sell long-term holdings now.
Moreover, in terms of long-term confidence in Ethereum, 2.0’s deposit contract has recently been over $3 million ETH.
Although ETH has been on the price charts for a while now, it must be noted that there were quite a few indicators that indicated what was going to happen. According to Santiment, for example, the number of whales carrying more than 10,000 ETH ballooned to 1,287 on Valentine’s Day, “foreshadowing this achievement.”
Finally, as of a few days ago, Ethereum’s top 100 whale exchange addresses had the lowest balance of $ETH tokens (~11.4M) in 27 months.
With enough momentum along with these innovations, Ethereum’s price reacted positively and was able to set another all-time high in 2021.
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