Ethereum’s native token Ether (ETH) rebounded on September 26 after a massive drop earlier this week pushed its price as high as $ 2,651 on Coinbase.
The ETH / USD exchange rate jumped 3.63% to hit an intraday high of $ 3,030. The move up to the 14.3% upward retracement from the pair’s weekly low of $ 2,651 shows that traders have managed to maintain their bullish bias despite the ups and downs.
Last week, the price of ether fell due to a number of issues from China. On Monday, traders repeatedly dumped crypto assets after a spurt of turmoil in China’s heavily indebted real estate market led to a sell-off in all markets.
A recovery move followed over the weekend, but led to another sell-off on Friday after the People’s Bank of China reiterated that crypto transactions are illegal. However, the Ethereum bulls held their own, pushing the price back above $ 3,000, a level of psychological resistance.
Feelings are similar for some of the top crypto assets, with the crypto benchmark Bitcoin on Coinbase hitting an intraday high of $ 43,767 after rising 2.49%. Meanwhile, the Uniswap exchange’s native asset UNI also rose 19% and became the top performing crypto asset for at least the last 24 hours.
At the same time, Ethereum’s top rivals Cardano (ADA) and Solana (SOL) fared poorly, with ADA / USD losing more than 5% and SOL / USD more than 3% over the adjusted 24-hour timeframe.
Ethereum’s gains also followed a bullish report from JPMorgan & Chase. The study notes that institutional investors have started to increase their exposure to the Ethereum market.
JPMorgan analysts cite the ongoing craze for decentralized finance (DeFi) and undistributed tokens (NFTs) as the main driver of investor interest in cryptocurrency with Ethereum. They added that the average 21-day Ethereum futures premium was up 1% versus the ETH spot rate, citing data recorded by the Chicago Mercantile Exchange (CME) since August.
JPMorgan’s report coincides with a record number of ether tokens being withdrawn from all crypto exchanges, according to CryptoQuant. At the time of going to press, the net ETH reserves via trading platforms had fallen from 23.94 million ETH a year ago to 18.44 million ETH.
Related: Ethereum falls more than Bitcoin as China escalates crypto ban, ETH / BTC to 3-week lows
Independent analyst PostyXBT too suspect Another potential price rally in the Ethereum market, noting that the recent decline in the cryptocurrency has pushed it into a classic accumulation area, as shown in the graph below.
The weekly close is equally important to ETH today as the price tests the top of the previous range as a support, the analyst noted.
“It seems like a logical area to take to a higher low and I bought more here for a long term swing / pocket trade. After a 33 percent correction to the domestic highs, RR looks cheap. “