The Reason for Ethereum Price Surge: CFTC ETH Futures?

2 months ago

Ethereum saw a tremendous 12% increase in the last 24 hours rising above $180 level with other major cryptocurrencies such as bitcoin showing only a proportionate increase. According to a recent publication by CoinDesk, CFTC is considering to launch Ethereum Futures Contract.

CFTC Ethereum Futures

A recent publication on CoinDesk suggests that the United States Commodity and Futures Trading Commission, also known as CFTC is all set for considering an Ethereum Futures Contract provided that the same meet the companies criteria.

Previously, when Bitcoin Futures were granted permission in the ending month of 2017, both the Chicago Mercantile Exchange (CME) and US Commodities and Futures Exchange (CFTC) were flooded with demands. Similarly, Ethereum futures would also attract a lot of institutional investors even though the investment in futures is not a direct investment and only a betting on the future price of the commodity or asset.

ETH price has seen a major crash since last year when the coin was trading at more than $800. Since the last many months, ETH has been trading below the $200 range and even fell below $100 sometime back. The recent rise in the price of ETH might be because of the CFTC taking interest in the cryptocurrency.

CFTC’s interest in ETH started in late 2018 when they issued a Request for input to seek more details on Ethereum’s technology and its model (consensus).

Ethereum Price Surge:

As soon as the publication went live, the price of Ethereum saw a tremendous surge, rising more than 12% in a matter of hours from around $160 to around $180. Not only the price but also the daily trading volumes increased to more than $8 billion.

ETH/USD Price Chart- Coinbase

Currently, Ethereum is trading around $177 as it corrected a few points lower after rising to more than $180. If ETH is able to close well above the $180 resistance level, there are high chances that ETH will rise above this level soon to move towards $200 range if the buyers stay strong.

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