Wednesday, October 23, 2021

Ethereum [ETH] Price Analysis: Futures Will be Ready in 2020, Prices Dip Against BTC and USD

CFTC Hints

There is optimism, the Commodity Futures Trading Commission (CFTC) Heath Tarbert has hinted that the cryptocurrency market will likely have access to ETH futures within the next six to 12 months a few weeks after the agency classified ETH as a commodity.

At the moment, no company has applied to offer the product to US clients.

While Ethereum [ETH] remains on the right path on their quest of developing the world’s largest decentralized computer, it is still struggling and is the second most valuable currency after Bitcoin but without the status of an alternative payment asset like BTC.

ETH Futures will be ready in 2020

Designed as an improvement of Bitcoin, ETH is not yet a veritable means of payment and as developers are actively building, devising scalability solutions to better enhance the network, news of possible liquidity injection through ETH futures is huge news for coin holders.

In a fire chat in the first day of DC Fintech Week held at Georgetown University, Heath told Chris Brummer, the moderator, that ETH futures could be available by 2020 though he wasn’t sure of trading volumes.

“I’d say it is likely that you would see a futures contract in the next six months to a year. The volume to which it’ll trade, no idea, that’s where the markets decide, but my guess is now that we’ve provided at least … a little bit more clarity on [ether’s eligibility for futures contracts], my guess is market participants will consider that.”

ETH/USD Price Analysis

ETH is in a lagoon, consolidating and posting losses against the green back and BTC in the last week. Although buyers have an upper hand if conclusions are draw from recent candlestick arrangement, sellers are pinning bulls, diluting demand in the last couple of days.

From the chart, the main support zone is between the $150 and $160 zone. Unless there is a sharp up-thrust, forcing prices above the immediate resistance zone of $180 and $200, odds are sellers will break and close below the support zone towards $130 and later $100.

In line with this alignment, the best course of action for shrewd traders is to opt out and maintain a neutral stand until any of the above conditions are met.

Should there be a price recovery in line with gains of Oct 6 and 7, as ETH soar past $200, the first target will be $230 and later $300 as mentioned in previous ETH/USD price analysis.

Chart courtesy of TradingView - Coinbase

Disclaimer: Views and opinions expressed are those of the author and is not investment advice. Trading of any form involves risk. Do your research.

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Ethereum [ETH] Price Analysis: Futures Will be Ready in 2020, Prices Dip Against BTC and USD