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Ethereum price hits record high above $4,600 as rally continues -Breaking

by Mike Robinson

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© Reuters

By Samuel Indyk

Investing.com – The price of rocketed to a new all-time high above $4,600 on Wednesday morning as the rally in most major cryptocurrencies has continued. Market cap for the second largest cryptocurrency is now just below $550 billion.

Rally for Ethereum: Calls

A recent note from Goldman Sachs (NYSE) was one of the catalysts that has fueled the Ethereum rally. According to the US investment bank, Ethereum could reach $8,000 before the year ends.

Bernhard Rzymelka, Goldman’s Managing Director of Global Markets, noted that crypto assets have traded broadly in line with inflation breakevens since 2019. Rzymelka says that if inflationary pressures persist, then this could be supportive for Ethereum as it has tracked inflation markets particularly closely, “likely reflecting the pro-cyclical nature as a ‘network based’ asset”.

“The market has started to press against the all-time high with a narrowing wedge: Either a sign of exhaustion and peaking … or a starting point of an accelerating rally upon a break higher,” Rzymelka said. If the historical correlation continues, Ethereum may surge to $8,000.

CME Micro Ether Futures

News that the CME will launch is another positive factor in Ethereum’s favor. Micro Ethereum futures

CME posted a note on its website stating that Micro Ether futures will launch on June 6.The following is a list of thDecember

“Since the launch of Ether futures in February, we have seen steady growth in liquidity in these contracts, especially among institutional traders,” said CME Global Head of Equity Index and Alternative Investment Products Tim McCourt. “At the same time, the price of Ether has more than doubled since these contracts were introduced, creating demand for a micro-sized contract to make this market even more accessible to a broader range of participants.”

Micro Ether futures will join CME’s growing number of cryptocurrency-related derivatives, including Micro and Ethereum futures.

Cash-settled contracts will be made based on CME CF Ether Dollar Reference Rate. This serves as an once-a-day reference rate for the U.S. dollars price of ether.

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