Ethereum (ETH) price is currently surging by over 10%. The coin had awoken and had started a bull run of its own after the CFTC’s (Commodity Futures Trading Commission’s) recent statement that they are ready to consider allowing Ethereum future contracts. The new light shone on the crypto world’s second largest project caused its price to skyrocket, and if it continues like this — ETH might soon breach its support at $200.
Ethereum futures in consideration?
Now, to be clear, this does not have to mean anything yet. While most people in the crypto community are certain that ETH futures are about to arrive — the fact is that they are only about to be considered. However, an unnamed senior official at CFTC supposedly stated that the regulator plans to put Ether derivatives under their jurisdiction.
So far, the regulator itself did not officially mention any specific products. In fact, historically, the CFTC is known for taking its time when coming with a decision, even if it is as influential as this one. They did, however, said that derivatives exchange that wish to launch a specific product need to come to the regulator with a derivative that meets their requirements. If this condition has been met, the chances are that the regulator will approve it.
Crypto futures contracts, which allow traders to bet on the assets’ future price, have been very popular ever since Bitcoin futures appeared in 2017. Bitcoin itself had seen a lot more usage, as well as a massive surge in price back then. While the effects are likely to be much milder for ETH, it might still be possible that the second largest crypto might experience the same.
The crypto space reacts
The surge has already started, allowing Ethereum to grow from $163 to nearly $180 in a matter of hours. For many in the Ethereum community, this is a very promising behavior of the coin’s price, as ETH used to be particularly inactive in the recent past. The coin is now attempting to breach its first major resistance at $180, and if it succeeds, the next one sits at $200. While this would not be the first time ETH attempted to breach $180 in 2019, it might be a first successful breach, as the previous one was stopped with relative ease, and the coin’s price saw a $20-large drop.
As expected, ETH blasted through that key inflection point of $170 on above-average volume and was rejected at the next fib resistance level of $176.
— Joe McCann (@joemccann) May 6, 2019
After a 12.5% rise in less than 12 hours, the coin also managed to increase its market cap, currently at $18.90 billion. It also increased the distance between itself and XRP, now being ahead by over $6 billion.
As Ethereum approaches the levels it has not seen for over 6 months now, many are wondering whether the coin has the ability to actually get there. A move to $200 is quite possible as things are now, particularly as Bitcoin itself approaches the $6,000 level, with its current price being at $5,939. It seems likely that the two will reach their resistances, and potentially overcome them, at a similar time.
If it happens, the coins will officially return to the heights seen prior to the mid-November market crash. Meanwhile, the two coins’ rise has, as usual, affected the rest of the market as well. Pretty much all coins are currently trading in the green, while the total crypto market cap currently sits just below $189 billion.