- Cryptocurrency exchanges hold 11.8% of Ethereum’s circulating supply after seven days of consecutive outflows.
- Amidst brewing supply shortages, the CME Group has announced plans to launch Micro Ethereum Options.
- Ethereum price crossed $3,000 for the first time since February 17, posting 14% gains over the past week.
- Analysts have set a target of $3,134 for Ethereum price, predicting pullback before the altcoin resumes rally.
Ethereum supply on exchanges is on a downward trend after days of consecutive outflows. Amidst the brewing Ethereum supply shortage, analysts have predicted a rally in the altcoin.
CME Group’s Micro Ethereum options offer investors smaller sizing
The Chicago Mercantile Exchange (CME) Group currently offers investors Ethereum futures contracts and Micro Ethereum futures. The Group has revealed plans to introduce smaller sizing for investors with its Micro Ethereum options.
The Group previously launched derivative instruments underlying Ethereum in December 2021. Following the launch, investors have a rising demand for Ethereum futures.
The CME Group is the world’s largest exchange by futures and options daily volume. Therefore, the addition of another offering to diversify the CME Group’s portfolio could attract investors to the platform. The exchange has announced the launch of Micro Ethereum options on March 28, pending regulatory evaluation.
The timing of launch could be lucrative to traders as there is an Ethereum supply shortage brewing across exchanges. Crypto data intelligence platform IntoTheBlock has noted seven consecutive days of Ethereum outflows from crypto exchanges.
Exchanges now hold 11.8% of Ethereum’s circulating supply. Historically, a shortage in supply on exchanges has fueled a rally in the altcoin’s price. Ethereum price has crossed $3,000 and posted double-digit gains over the past week.
Analysts have evaluated the Ethereum price trend and predicted a continuation of the altcoin’s uptrend, setting a target of $3,134. @Pentosh1, a pseudonymous cryptocurrency analyst, has predicted a pull back before Ethereum price hits the target.
$ETH— Pentoshi (@Pentosh1) February 28, 2022
Never bought back mine from 4100 despite having 2 shots at 2200 essentially. But will look to get it back here in the next 0-72 hours. I think a small pull back before push forward to 34xx is in the cards
Will update as we go pic.twitter.com/A6vVGTWlPg
FXStreet analysts believe that Ethereum is on its road to recovery. The analysts have noted bullish indicators in the Ethereum price trend and believe that $3,000 is a key level to watch. A breakout past $3,175 would confirm the Ethereum price rally. The target is set at $3,800 if the Ethereum price preserves its uptrend.
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