Ethereum price analysis: ETH/USD cancels May gains; Ethereum Futures are live despite SEC probe
|- Ethereum (ETH) Futures join BTC Futures and XRP futures launched in 2015 and 2016 respectively.
- Ethereum price is currently correcting higher above $680; eyes are on $700.
Ethereum price and many other cryptocurrencies alike have been caught in the crossfires involving Bitcoin price and the activities Mt. Gox trustee- the establishment put in place to sell assets of Mt. Gox exchange after it filed for bankruptcy. The plunge in the market has been reported to have been caused by wallets of the trusted moving at least 8,000BTC. Bitcoin price has also dipped over 8% and is trading at $8,861 while ETH/USD is down over 11% on the day.
The huge downside movement of Ethereum price coincides with the news that the Financial Conduct Authority in the UK has launched Ethereum Futures regulated trading. Bitcoin (BTC) Futures went live in 2015 while Ripple (XRP) futures in 2016. Several banking institutions take part in Bitcoin Futures trading, and Ethereum Futures are proving the maturity of cryptocurrencies. The CEO of CryptoFacilities, a firm that provided support for BTC Futures, Timo Schlaefer said in a comment:
“Bitcoin has gone through a process of maturation as a financial asset with a futures market in the past year," he added. "And Ethereum is following a similar path this year.” Commenting about the securities probe on Ethereum, he also said, “Whether Ethereum is a security is a matter for different jurisdictions to decide. Crypto Facilities is a derivatives platform and complies with the applicable regulation.”
Ethereum Futures will get liquidity support for Crypto Facilities from Akuna capital in Chicago. The firm is positive that the new product will be a big boost in the market. The head of digital assets at Akuna Capital, Toby Allen said:
“The addition of a futures product enables crypto traders to take both long and short positions in ETH and is another giant leap in the development of the crypto asset class."
Ethereum price analysis
Ethereum price is trading below $700, but it has found a short-term support above $660. The price broke out of the thinning triangle pattern rejecting several areas at $720 and $700 respectively. At the moment, ETH/USD is trading above the former resistance level at $680, while it is targeting $700 on the upside. The moving averages on the 1-hour chart are pointing towards higher corrections before the close of the trading session on Friday. As mentioned the immediate support is at $660, but further declines will be stopped by another support area close $640.
ETH/USD 1-hour chart
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.