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According to the data, the price of Ethereum reached more than $1700 on Friday by an increase of 11%, and its price at the time of writing has reached $1,707.
Ethereum, on February 8, reached a price of $1,707 by an increase of 8.91% with a market cap of more than 195 billion and more than 114 million circulating supply. It was the first time when Ether hit past $1,700. There was a steady increase in Ether's price this week as Ether Futures Contracts are going to be launched next week from the Chicago Mercantile exchange. Momentum for Bitcoin could be a significant driver to increase the price of Ethereum in recent months.
This year has seen many price highs for many cryptocurrencies, including Bitcoin, Ripple, and Ethereum. Ethereum, the second-largest Cryptocurrency, has now again hit the high price by increasing more than 25% this week. The reason could be the investment by many institutional investors. Grayscale has reopened its Grayscale Ethereum Trust and has seen more than 100,000 ETH inflows to make a total of $5 billion Ethererum. Notably, Grayscale closed the funds for new investors for administrative purposes in late December. It could be seen that the traders are selling their BTC for ETH since the start of 2021. Many of the decentralized finance projects also rely on ERC 20 tokens for their operation, and this could also be the reason for the surging of ETH.
Chicago Mercantile Exchange will launch Ethereum futures contracts in the coming week, and its first contract is launched on February 8 itself. In the crypto market, it is another offering alongside Bitcoin futures. It is estimated that the initial volumes in ethereum futures will be relatively low and will change quickly.
Ether Futures and other crypto-focused products can give investors more confidence to invest in it, and seeing more upward trend for Ethereum will be no wonder in the coming week. According to the sources, coming week’s Ethereum Futures Contracts' listings could be followed by negative price dynamics. It will enable some holders to hedge their exposures, just like it contributed to Bitcoin’s price dynamics' reversal.