Ethereum (ETH) has seen a serious drop in the last 24 hours. It was already predicted by analysts that the leading altcoin and the market in general would experience this decline. Doctor Hardfork, one of the local analysts, had predicted exactly the day. So what's happening at ETH?
Ethereum investors are of the opinion that ETH will drop, just like Bitcoin did when CME BTC Futures went live on December 18, 2017. However, institutions like Grayscale are growing Ethereum.
CME Group will launch its highly anticipated Ethereum futures contract tomorrow. The news of the launch of CME Ethereum futures has been the force behind ETH's rise from about $ 600 in December 2020 to an all-time high of $ 1,759.
Support Need To Watch 1480$
The current all-time high for Ethereum was the result of ETH breaking past its all-time high at $ 1480 and its associated resistance zone. This area will now be a support zone and once again an area to watch as CME Ethereum futures are released. This important support is highlighted in the daily ETH / USDT chart below.
The daily Ethereum chart heralds a short-term drop for ETH. To begin with, the daily trading volume is red and confirms this with the red Heiken Ashi candle. The daily MACD histograms are also short, indicating that uptake by the ETH bulls is declining. Second, the daily MFI and RSI of 64 and 69, respectively, point to an ongoing correction by Ethereum.
Ethereum Could Drop Like Bitcoin
Experienced Bitcoin and Ethereum traders are well aware that the launch of CME BTC futures on December 18, 2017 was responsible for the impressive rally of up to $ 20,000. The launch of Bitcoin futures that year would kick off a brutal bear cycle that would end a year later with $ 3150 BTC.
Therefore, there is a low probability that Ethereum will have a similar fate after CME ETH Futures is released.
