Ethereum (ETH) has had a tough year.
In fact, it’s now down more than 70% since January 2018, and can’t seem to find its way. But, according to Bitcoin bull Tom Lee, it could be about to stage quite a breakout.
The last four times it lagged its peers that badly, by two standard deviations, the coin saw a “major trend reversal,” he says, as quoted by CNBC. “We believe Ethereum is about to stage a trend reversal and rally strongly.”
In addition, he “believes sentiment is currently overly negative on ETH.” While it has underperformed its peers by two standard deviations, Lee said that’s “a sign of capitulation.”
Can ETH Rebound from its Lows?
We have to consider two things when it comes to Ethereum (ETH) prices.
One, the coin is oversold at support dating back to September 2017. It’s also trading at its lower Bollinger Band (2,20). In addition, Williams’ %R beginning to pivot higher.
The other catalyst is the Chicago Board of Options Exchange (CBOE)
The CBOE will launch Ethereum futures in 2018. And it will reportedly do so with Gemini’s market. CBOE launched Bitcoin futures at the end of 2017.
In fact, the futures trading is said to have contributed massively to reducing the volatility of Bitcoin since then. Reports indicate that CBOE is waiting to be cleared by the Commodities Futures Trading Commission before launching it officially.
According to Chris Concannon CBOE’s Global markets president: “SEC announced that Ethereum is not a security. This announcement cleared a block which stood between us and Ethereum futures. We have been considering launching Ethereum futures since December 2017 when we launched Bitcoin futures.”
Another catalyst is LedgerX
Reportedly, LedgerX has an Ethereum options product which is ready to go live. The trading firm is currently awaiting approval from the Commodities Futures and Trading Commission (CFTC) before it can be made officially available. Approval could come after an October 5, 2018 meeting, as noted by Ethereum World News.
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