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Markets

Futures Boost? Ether Looks Up on 11-Week High

With talk of a possible derivatives market on the way, the price of ether, ethereum's native token, looks to be on the rise.

By Omkar Godbole
AccessTimeIconNov 20, 2017 at 2:00 p.m. UTC
Updated Sep 13, 2021 at 7:10 a.m. UTC
ladder, height

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

download-1-22

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

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CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.