By CCN.com: Trading sentiments in Ethereum (ETH), the world’s second largest cryptocurrency, were extremely positive this Monday.
The ether-to-dollar exchange rate surged as much as 9-percent to establish an intraday high towards $175.97. The asset experienced a similar bullish bias against its peers in the cryptocurrency industry. The ether-to-bitcoin exchange rate, for instance, rose as high as 9.45-percent, indicating that traders were hedging their bitcoin holdings into the Ethereum market.
The bitcoin price dropped up to 2.45-percent during the Monday session.
The Ethereum pairs posted $7.43 billion worth of volume this Monday, according to CoinMarketCap’s 24-hour adjusted timeframe. Considering that 95-percent of the total reported trading activity is typically fake, the Ethereum pair originally posted $371.5 million worth of volume. The ETH-enabled trades looked well-spread across both regulated and unregulated exchanges.
CFTC Saved the Day
An official close to the Commodity Futures Trading Commission (CFTC) revealed Sunday that they were planning to approve an Ethereum-based, cash-settled futures contract.
The rumor helped driving the fresh wave of buying sentiment in an otherwise bearish Ethereum market. Traders may have picked the CFTC announcement as a sign of institutional investment, which explains why Ethereum was among the only few assets across the cryptocurrency board that trended in positive territory throughout Monday.
that’s a sentence i thought i’d never say pic.twitter.com/cVE80mC6eT
— Josh HODLonautszewicz (@CarpeNoctom) May 6, 2019
Nevertheless, an Ethereum-based future contract means that speculators will not require to purchase the actual ether tokens to settle their contracts. Instead, they will use cash, which makes the ongoing Ethereum price rally baseless. Moreover, the capital injection into the Ethereum market could turn weak once a…