ETH Reaches All Time High as Futures Begin Trading on CME

ETH Futures are Now Trading on the CME

After much anticipation, the Chicago Mercantile Exchange (CME) has launched its much-anticipated futures contracts for ether (ETH), the native cryptocurrency of the Ethereum blockchain network.

The initial announcement came in mid-December, trading in ether futures went live late Sunday, with the February contract registering an opening price of $1,669.75. At the time, the spot price was hovering around $1,600.

The Chicago-based exchange has traded 77 contracts so far, with most activity concentrated on the February expiry. The futures contracts are legal agreements to buy or sell the crypto asset at a predetermined price at a later date.

CME Futures

The Bitcoin Comparison

The announcement has been taken as bullish news for some but bearish news for others. The bearish argument is largely rooted in the fact that we saw a reversal in Bitcoin the same day futures were announced in 2017, followed by a year long bear market. The problem is, in many ways, this is like comparing apples to oranges.  “The market is now more mature, the macro is different, and there are different players involved,” trader and analyst Alex Kruger tweeted last week, ruling out a significant correction for ETH over the next year.

History Being Made

Interestingly enough, ETH just broke its all time high and is still climbing. Volume today is higher than we have seen thus far in 2021, and the momentum is likely to continue into the evening as Asia picks up the bullish momentum. Today is a historic day for ETH and the crypto futures market and we are seeing the market fervor that accompanies moments like this.