Futures Boost? Ether Looks Up on 11-Week High

Omkar Godbole
Nov 20, 2017 at 14:00 UTC
FEATURE

Having clocked an eleven-day high on Sunday, the price of ether, ethereum's native token, may have more gains ahead.

As per CoinMarketCap, the cryptocurrency rose to $371.29 yesterday – its highest level since Sep. 2. Week-on-week, ETH has gained 13.22 percent, while on a monthly basis, it is up 15.08 percent. At time of writing, the ether-U.S. dollar (ETH/USD) exchange rate is at $358 levels.

ETH seems to have pushed fears over the Parity wallet freeze on the back burner and moved higher to $350 levels in line with the bullish technicals as expected. The bid tone strengthened on Nov. 16 alongside a Bloomberg report that said the second-biggest cryptocurrency is poised to get its own derivatives market.

"Contracts on the ether digital currency will be offered by an as-yet-unnamed exchange going by the code name Virtuoso," the report said. "Virtuoso" will reportedly be regulated by the U.S. Commodity Futures Trading Commission, and plans to offer futures, non-deliverable forwards, swaps and forwards by the first or second quarter of 2018.

If the plan comes to fruition, ether derivatives will provide an avenue for yield-hungry institutional investors to invest in an asset that is up 4,000 percent on a year-to-date basis.

The price action analysis suggests ether is aiming for record highs and any dips are likely to be short-lived.

Ether chart

The above chart shows:

  • A solid bullish Bollinger band breakout
  • Prices closed above resistance of $350 (Oct. 16 high)
  • Bullish relative strength index (RSI)
  • All major averages – 50-day MA, 100-day MA, 20-day MA, 10-day MA – are sloping upwards in favor of the bulls.

View

  • Ether looks set to test record highs above $400 levels over the next week or two.
  • Dips, if any, are likely to be capped below the 10-day MA level of $332 levels.
  • Only an end-of-day close below $310 (50-day MA) would abort the bullish view.

Ladder image via Shutterstock

The leader in blockchain news, CoinDesk is an independent media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. Interested in offering your expertise or insights to our reporting? Contact us at news@coindesk.com.

Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Please conduct your own thorough research before investing in any cryptocurrency.

PricesEthereum

Load Comments