The open interest on Ethereum Futures skyrocketed by 50%, while Ethereum’s call options also skyrocketed significantly. Most importantly, the purchase of institutions was resumed in Ethereum with its improvement in the fundamentals of the network.
The world’s second largest cryptocurrency, Ethereum (ETH), overcame all resistance to reach a new record above $ 1550. The recent price increase in ETH occurs just before the launch of CME Ethereum Futures scheduled for February 7, 2021. The momentum is already gaining with the open interest of ETH Futures massively jumps over 50% in the last 24 hours.
$ ETH futures open interest hits new all time high of $ 5.60 billion, up 47% in the past 24 hours. CME Ether futures also launches in just 5 days.
– Bloqport (@Bloqport) February 3, 2021
“$ ETH futures open interest reached a new historical record of $ 5.60 billion, an increase of 47% in the last 24 hours. CME Ethereum futures will be launched in just 5 days. ”
With its current move, Ethereum also surpassed 100% only in the first month of 2021. ETH is trading at a price of $ 1529 with a market capitalization of $ 176 billion. This also makes Ethereum more valuable than some of the major banking financial institutions like Citigroup.
ETH whales would have played an important role in raising the price of ETH to new peaks. In addition, ETH’s latest price hike comes just after the world’s largest digital asset manager, the Grayscale, announce the reopening of the Grayscale Ethereum Trust (ETHE) for accredited investors. Interestingly, it was found that Grayscale bought another 24,796 ETH worth about $ 38 million in the past 24 hours.
Grayscale adds 24,796 $ ETH worth $ 37.8 million over the past 24 hours, bringing their total ETH AUM to $ 4.5 billion.
– Bloqport (@Bloqport) February 2, 2021
“Grayscale added $ 24,796 worth $ 37.8 million in the last 24 hours, bringing the total ETH AUM to $ 4.5 billion.”
As of now, Grayscale holds more than 2.96 million ETH coins, as the total assets under ETHE’s management exceed $ 4.0 billion. Interestingly, just before the last hike, the options market was dominated by call options. Almost 80% of Deribit’s ETH volumes were inundated with purchase calls.
Fundamentals improve, but JPMorgan seeks caution
The fundamentals of the Ethereum network continue to improve with each passing day. As the big players continue to accumulate more Ethereum, the supply of ETH on exchanges continues to fall at a very rapid rate. Citing data from CryptoQuant and Bloqport reports:
“$ ETH held on exchanges has just reached a historic low. In the past 30 days, 3.75 million ETH worth $ 4.97 billion left exchanges, possibly for staking, DEXs or cold storage. ”
In addition to a large amount of ETH going into cold storage, much of it also goes to Ethereum 2.0. On-chain data provider Glassnode also stated that more than $ 4.0 billion in ETH is now available for staking under Ethereum 2.0 deposit contracts.
Current value: $ 4,019,518,393
– glassnode alerts (@glassnodealerts) February 2, 2021
“The total amount of $ ETH in the ETH 2.0 deposit agreement has just exceeded $ 4,000,000,000.”
While the bullish momentum around ETH increases, JPMorgan recently advised caution. The banking giant says the euphoria surrounding the launch of CME Ethereum Futures could turn upside down. JPMorgan strategist Nikolaos Panigirtzoglou told Bloomberg that the launch of Ethereum futures could lead to “negative price dynamics”, leading to a correction.
The strategist thinks Ethereum Futures will give big players the opportunity to protect cryptocurrency, just as they did with the launch of CME Bitcoin Futures after Bitcoin reached $ 20K levels in December 2017. It will be interesting to see what price action follows later on Ethereum (ETH). Currently, with an all-new high, ETH has entered a price discovery mode. Fortunately, the bulls’ fury continues.