- ETH sets new record highs above $1,860 and aims to reach towards the $2K mark.
- The cryptocurrency looks bullish and this is the first time it has broken above $1,800 in two years.
- ETH is one of the strongest performers among the top 10 crypto assets.
Ether (ETH), has set a new all-time high of $1,867.06 and is aiming towards the $2K mark. This is the first time the digital asset has been over the $1,800 level since Jan. 13, 2018.
Contributing Factors Towards ETH’s Bullish Momentum
The decentralized finance (DeFi) sector is among the contributing factors to ETH’s bullish momentum. Furthermore, the DeFi market now holds over $40 billion TVL locked in its protocols. Notably, the platform has seen growth over the past weeks led by Uniswap, Yearn.finance, and other DeFi tokens, which gained by double-digit percentages.
CME’s Futures Launch
Additionally, Chicago Mercantile Exchange (CME), the world’s largest derivatives platform, announced on Dec. 16 its plans to launch Ethereum futures by Feb. 8. In particular, Ethereum experienced new highs the same week the CME launched its Ether futures market.
Thus, CME’s futures launch is likely a catalyst to the asset’s price making ETH a more attractive investment. Since the launch of CME’s futures, ETH has rallied over 12%. The product has traded less than $200 million worth of contracts this week
Ethereum 2.0 Phase 1 Release
In December 2020, Ethereum launched ETH 2.0.This is a move from a Proof-of-Work (PoW) to a Proof-of-Stake (PoS) consensus algorithm. Ethereum 2.0 has a goal of becoming a faster, more efficient, and more scalable platform.
Ethereum 2.0 upgrade will come in four separate phases – Phase 0, Phase 1, Phase 1.5, and Phase 2 – each laying the technical foundation for the next until the final phase is completed.
While ETH continues to set new all-time highs and is aiming towards the $2K mark, Bitcoin continues to bounce between $46,000 and $48,000.