Launching ETH Futures Can Be Bad ...

ETH futures launch could hurt price – JPMorgan
CONTENT

  • Ether futures could shatter cryptocurrency rally, JPMorgan says

  • Meanwhile, ETH renews all-time highs

  • Crypto community doubts a repeat of 2017 scenario for ether

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Launching ETH Futures Can Be Bad ...

ETH futures scheduled to open this week could play poorly on cryptocurrency price, JPMorgan said

JPMorgan analysts believe that the launch of ETH futures will stop the coin’s rally in the spot market. Bloomberg writes about this, referring to the report of banking analysts.

The rally in ether may face bearish pressure after the launch of ETH futures. Recall that the Chicago Mercantile Exchange plans to open trading in futures contracts for the second largest cryptocurrency on February 8.

Launching ETH Futures Can Be Bad ...

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In particular, JPMorgan analysts draw parallels between an ETH derivative and bitcoin futures. The BTC rate plummeted after the launch, which took place in 2017. The Federal Reserve Bank of San Francisco even released a report according to which it was the launch of futures that made it easier for bears to enter the market..

So, according to the report, the rapid rise in bitcoin and the subsequent fall after the appearance of futures “does not seem random.” Futures contracts “allowed pessimists to enter the market”, which affected the dynamics of the cryptocurrency, the report says..

Futures don’t mean anything

However, JPMorgan analysts believe that starting volumes for ETH futures will be insignificant and are unlikely to be able to trigger an unfavorable scenario for cryptocurrency..

A similar opinion is shared by Vijay Aiyar, head of the Luno crypto exchange. According to him, the launch of futures is unlikely to affect the price dynamics of the cryptocurrency due to the fact that big money is just beginning to come to the ether market.. 

“Smart traders switched to ether when bitcoin surpassed $ 40,000,” Aiyar said..

Launching ETH Futures Can Be Bad ...

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The further growth of the cryptocurrency was previously announced by the strategists of Fundstrat Global Advisors. In their opinion, the price of Ethereum will sooner or later reach the level of $ 10,500. The only thing that can now affect the growth of the cryptocurrency is the difficulties with the transition to ETH 2.0, writes Bloomberg. At the time of this writing, the price of ETH / USDT is $ 1,523.

Read about Ethereum 2021 in a special material from BeInCrypto.

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