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Breaking News: UNI Rallies 10% As BlackRock Brings Treasury‑Backed BUIDL Token To Uniswap
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Breaking News: UNI Rallies 10% As BlackRock Brings Treasury‑Backed BUIDL Token To Uniswap

Ethereum/Bitcoin Futures Ratio Launch Could Threaten ETH Price? Expert Forecasts

Reynaldo Marquez
Reynaldo Marquez
Last Updated: June 30, 2023 2:00 am
2 mins read
Ethereum ETH ETHUSDT

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The two largest cryptocurrencies by market capitalization, Ethereum and Bitcoin, slowed down on their rally. Following a surge above critical resistance, the cryptocurrencies could retrace and return to critical support levels.

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As of this writing, Ethereum (ETH) trades at $1,840 with sideways movement in the last 24 hours. Over the past week, ETH has recorded a 2% loss except for Bitcoin (BTC) and Solana (SOL), the crypto top 10 by market cap trades in the red.

Ethereum ETH ETHUSDT
ETH’s price trends to the downside on the daily chart. Source: ETHUSDT Tradingview

Trouble Ahead For Ethereum?

Earlier today, the Chicago Mercantile Exchange (CME) announced the launch of a new product. The platform will roll out an Ethereum (ETH/USD) to Bitcoin (BTC/USD) ratio futures contract.

The financial product will follow the price of these cryptocurrencies and their correlation. In that way, traders can gain exposure to both cryptocurrencies by holding a single futures contract.

According to an official announcement, The product aims to create more opportunities for traders in the nascent industry. However, in the short term, the CME launch hints at a potential downside for the two largest assets in the crypto market.

CME Product Could Trigger This Effect

In the past, whenever the CME rolled out a Bitcoin or Ethereum-based contract, the price of either asset trended to the downside. A pseudonym analyst forecasted issues for ETH and BTC, probably driven by a “buy the rumor, sell the news” effect.

Via Twitter, the analyst stated, reacting to the news:

If this has an effect similar to the $BTC & $ETH futures back in the day then the release of this instrument could form a pivot for the ETH/BTC pair. Maybe more down into the release and then a reversal around the end of July? Let’s see.

In response to the forecast, another analyst stated that a “buy the rumor, sell the news effect” will cause ETH’s price to rally into the event. Therefore, ETH could profit as the CME prepares to roll out their new contracts and anticipation around the spot Bitcoin Exchange Traded Funds (ETFs) applications continues.

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Bitcoin Bulls Battle Against Miners’ $128 Million Move: Is The Bull Run In Danger?

1 year ago

The analyst stated:

Wouldn’t make more sense a buy the rumor, sell the news event? So we pump before end of July Everything is exhausted right now. If BTC pumps through resistance, maybe ETH could catch up.

Cover image from Unsplash, chart from Tradingview

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Reynaldo Marquez
Reynaldo Marquez

Reynaldo Marquez

A literature major, Reynaldo Márquez has been deeply immersed in the crypto industry since 2017. His journey began with translating articles for various crypto news outlets, a role he took on with zeal. In 2018, amidst a challenging market, he embraced his first writing assignment, demonstrating his unwavering commitment to the nascent industry and the promise of change it bears for many people worldwide.
In March 2021, he joined the prestigious crypto news outlet NewsBTC and Bitcoinist, where he not only reported on the latest crypto news but also had the privilege of interviewing some of the industry's most influential figures. A year later, his dedication and hard work were recognized, and he was promoted to Managing Editor, a position he currently holds with pride.
He believes in honesty, good communication, hard work, and the power of cryptocurrency and its potential to transform people's lives, especially those alienated by the legacy financial system. Born in 1992 in Venezuela, Reynaldo is familiar with how governments and central banks can negatively affect people, their everyday lives, and their futures by creating inflation and erasing their hopes for a better future. Thus, like many Venezuelans, he embraced this new technology to help him and his family navigate difficult times.
In another life, Reynaldo would have pursued a career as an investigator, most likely tracking down the origins of the Cyberpunk movement with the publication of William Gibson’s ‘Neuromancer.’ The intersection between fiction and reality, with the materialization of Bitcoin in 2009, would have allowed him to dive deep into the crypto sphere as something more than a financial phenomenon but also a cultural shift in society that was brewing since the XX century, and maybe even sooner, in the XIX century with the publication of Henry David Thoreau’s ‘Civil Disobedience.’
But that’s for another life. In this one, Reynaldo has been trading to improve his trading skills. Since 2023, he has been trying to learn Python to create successful strategies and find ways to execute them. It is a difficult task, which continues to keep him busy today and will most likely continue to keep him busy in the near and long term.
In his free time, he enjoys lifting heavy objects, reading, watching movies, and listening to his favorite music. Some of his favorite authors are Walt Whitman, William Faulkner, Allen Ginsberg, James Baldwin, Raymond Carver, Ray Bradbury, George Orwell, Mario Vargas Llosa, Reinaldo Arenas, Rafael Cadenas, and many others. Lately, he has been primarily interested in reading about dystopic societies, a topic that deeply resonates with the crypto industry.
Since 2023, he has lived in Spain with his wife. He loves the weather, the food, and the people and their culture. They both expect to travel much more within the country they now call home and beyond its border. He hopes to retire with his wife, maybe in a quiet place near a beach, but most likely in a city close to a library and a university with his kids and, hopefully, grandkids.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

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Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality
Created by industry experts and meticulously reviewed
The highest standards in reporting and publishing
How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.

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NewsBTC is a cryptocurrency news service that covers bitcoin news today, technical analysis & forecasts for bitcoin price and other altcoins. Here at NewsBTC, we are dedicated to enlightening everyone about bitcoin and other cryptocurrencies.

We cover BTC news related to bitcoin exchanges, bitcoin mining and price forecasts for various cryptocurrencies.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

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