Ethereum’s native token Ether (ETH) made a rebound on September 26 after a massive drop earlier this week that sent its price down as low as $2,651 on Coinbase.
The ETH/USD exchange rate rose 3.63% to reach an intraday high of $3,030. The upside hit a 14.3% bullish retracement from the pair’s one-week-to-date low at $2,651, showing that traders tried to maintain their bullish bias despite potential headwinds ahead.
Last week, Ether prices fell due to a wave of issuance originating from China. On Monday, traders dumped crypto assets en masse after turmoil in the debt-laden Chinese real estate market triggered a sell-off in global stock markets.
A rebound followed later in the week, but it faced another sell-off on Friday after the People’s Bank of China reiterated that cryptocurrency trading is illegal. However, Ethereum bulls kept their foothold and pushed the price above $3,000, a psychological resistance level.
Sentiments were similar across some of the major crypto assets, with the benchmark Bitcoin hitting an intraday high of $43,767 on Coinbase after a 2.49% move higher. Meanwhile, Uniswap’s original UNI asset has outperformed by over 19%, becoming the top-performing crypto asset at least in the past 24 hours.
Meanwhile, top Ethereum rivals Cardano (ADA) and Solana (SOL) underperformed, with ADA/USD down more than 5% and SOL/USD losing more than 3% on an adjusted 24-hour time frame.
institutional demand
Ethereum’s gains also came after a bullish report from JPMorgan & Chase. The study indicated that institutional investors are beginning to increase their exposure in the Ethereum markets.
Analysts at JPMorgan credit the ongoing frenzy in the decentralized finance (DeFi) and non-fungible tokens (NFT) sector as the primary driver behind investor interest in Ethereum. They added that the average premium for the 21-day Ethereum futures contract rose to 1% above Ethereum spot prices, citing Chicago Mercantile Exchange (CME) data recorded since August.
The JPMorgan report coincided with a record amount of Ether tokens being withdrawn from all cryptocurrency exchanges, according to data provided by CryptoQuant. At press time, net reserves of ETH on exchanges have fallen to 18.44 million ETH compared to 23.94 million ETH a year ago.
Related: Ethereum drops more than Bitcoin as China steps up crypto ban, ETH/BTC at 3-week low
PostyXBT also independent analyst Expect A possible further price recovery in the Ethereum market, with the noting that the cryptocurrency’s recent declines have pushed it within a classic accumulation range, as shown in the chart below.
The analyst noted that “the weekly close is just as important as ETH today as price tests previous range highs as support.”
“Seems like a logical area for a higher bottom and I have bought more here for the long-term bag/swing trade. RR looks decent after 33% retracement from the local top.”
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