Ethereum’s native Ether (ETH) token rebounded on September 26 after a massive drop earlier this week that saw its prices plunge to $ 2,651 on Coinbase.
The ETH / USD exchange rate rose 3.63% to an intraday high of $ 3,030. The bullish move amounted to a 14.3% bullish retracement from the pair’s week-to-date low of $ 2,651, showing traders have tried to hold onto their bullish bias despite potential headwinds future.
Ether prices fell last week due to a wave of problems from China. Traders emptied crypto assets en masse on Monday after an uproar in China’s heavily leveraged real estate market caused a sell-off in global stock markets.
A rebound movement ensued later in the week, but encountered another sell-off on Friday after the People’s Bank of China reiterated crypto transactions are illegal. Nonetheless, the Ethereum bulls maintained their grip and pushed prices back above $ 3,000, a psychological resistance level.
Sentiments were similar for some of the major crypto assets, with the benchmark cryptocurrency Bitcoin hitting an intraday high of $ 43,767 on Coinbase after a 2.49% bullish move. Meanwhile, the native asset of the Uniswap exchange, UNI, also rose more than 19%, becoming the top performing crypto asset at least in the previous 24 hours.
At the same time, Ethereum’s main rivals, Cardano (ADA) and Solana (SOL), performed poorly, with ADA / USD falling more than 5% and SOL / USD losing more than 3% on an adjusted 24 hour period.
Ethereum’s gains also followed a bullish report from JPMorgan & Chase. The study noted that institutional investors have started to increase their exposure to the Ethereum markets.
JPMorgan analysts attributed the continued craze in the decentralized finance (DeFi) and non-fungible token (NFT) industry as the main driver of investor interest in Ethereum. They added that the average 21-day Ethereum Futures premium has climbed 1% against ETH spot prices, citing Chicago Mercantile Exchange (CME) data recorded since August.
The JPMorgan report coincided with a record number of Ether tokens withdrawn from all crypto exchanges, according to data provided by CryptoQuant. At the time of going to press, net ETH reserves on trading platforms had fallen to 18.44 million ETH, from 23.94 million ETH a year ago.
Related: Ethereum Falls More Than Bitcoin As China Steps Up Crypto Ban, ETH / BTC To 3 Week Low
Independent analyst PostyXBT also anticipates a further potential price rebound in Ethereum markets, noting that the cryptocurrency’s latest dips had pushed it into a classic accumulation range, as seen in the chart below.
“The weekly close is just as important for ETH today as prices are testing the range’s previous highs as support,” the analyst noted.
“It seems like a logical area to make a lower higher and I bought more here for long term sack / swing trade. RR looks favorable after a 33% correction from the local high.”
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