Institutional interest in Ethereum (ETH) has seen a significant surge in November, with the CME Futures Open Interest (OI) hitting a record high of 662,600 ETH, equivalent to about $2.5 billion. This marked a substantial increase from 350,950 ETH just before the Presidential elections in the United States, as reported by K33 Research.
The rise in institutional participation in ETH comes at a time when the cryptocurrency is gaining ground against Bitcoin (BTC). On 25 November, the volume of CME ETH Futures reached new heights, with the ETH annualized basis also showing an upward trend. This shift has outpaced the pattern observed in BTC since the U.S elections, according to Coinbase research analyst David Han.
Han highlighted that the CME ETH basis has recently exceeded that of BTC, a significant development following several months of trailing behind. While this increase in institutional interest may bode well for ETH’s price, it also introduces the potential for increased volatility due to hedge funds’ hedging strategies.
The momentum of ETH against BTC is further evidenced by the ETHBTC ratio, which tracks the relative performance of ETH to BTC. Over the past week, ETH has attracted more flows, leading to a nearly 15% rise in the ETHBTC ratio. This performance has allowed ETH to outperform BTC, particularly during BTC’s recent downturn.
For this trend to be sustainable, it is crucial for the ETHBTC ratio to decisively surpass the 50-day Simple Moving Average (SMA). A false breakout in early November led to ETH underperforming subsequently, but the current flirtation with the 50-day MA indicates the potential for a different outcome this time.
At the time of writing, ETH is priced at $3.4K, reflecting a 4% increase in the last 24 hours. The immediate price targets for ETH are set at $3500 and $3600, highlighting the positive momentum the cryptocurrency is experiencing.
In conclusion, the growing institutional interest in ETH, coupled with its performance against BTC, paints a promising picture for the cryptocurrency’s future. As long as the ETHBTC ratio continues to show strength and surpass key levels, ETH could be poised for further gains in the near term. The world of technology is constantly evolving, with new advancements and innovations being introduced almost every day. One of the most exciting developments in recent years has been the rise of artificial intelligence (AI) and machine learning. These technologies have the potential to revolutionize industries across the board, from healthcare to finance to transportation.
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