Ethereum (ETH) has rallied toward its all-time high, and some signs point to a break of the all-time high.
The first and most obvious sign that Ethereum will break its high is that Bitcoin did. Ethereum is the number two coin behind Bitcoin and it is the foundation of over half of the crypto ecosystem. At this point would be hard to have a crypto bull market without Ethereum coming along for the ride.
Second, and still important, is that ETH CME futures are set to launch on February 8th, 2021. Bitcoin CME futures were one of the major catalysts for the 2017 rally, so one might expect CME futures to give ETH legs.
Next, we have a potential breakout of the ETH/BTC pair which could propel ETH up to 400% (if somehow that happened here, it would put ETH at around $4,000).
Lastly, although this isn’t directly connected it is worth noting: The Grayscale premium has almost come fully off Ethereum as ETHE is now trading at around $12 (about $1,200 an Ethereum while Ethereum traded earlier today at $1,200 but currently is just above $1,000). I personally have a theory that with Grayscale, a low premium means we are reaching the point of maximum financial gain for buying into a given trust. That doesn’t mean we head straight back up at the point of convergence or near convergence, it means that buying at this point typically means buying around the bottom of a given trust in terms of pure USD price. Check out this ETHE chart, when you read this you should see Jan 4th, 2021 was an excellent date for buying and a date when convergence between the value of a share and Ethereum were convergent. Again, not saying we don’t have more downside, simply saying we are reaching the point where buying ETHE starts to make a lot of sense again.
In short, Ethereum is getting close to its all-time high, and there is every reason to be bullish (we only covered a fraction of the reasons here, others include gas prices not even coming close to summer prices in GWEI, search trend volume and transaction volume trending up, etc).