On Sunday, Ethereum prices recovered amid a market-wide uptick, with an additional boost from a bullish JPMorgan & Chase report.
Ether (ETH), Ethereum’s native token, rebounded on Sept. 26 after a massive drop earlier this week that saw its prices fall as low as $2,651 on Coinbase.
The ETH/USD exchange rate increased 3.63 percent to a high of $3,030 intraday. The upward movement amounted to a 14.3 percent retracement of the pair’s week-to-date low of $2,651, indicating that traders attempted to maintain their bullish bias despite potential headwinds ahead.
Ether prices fell last week as a result of a slew of Chinese-related issues. On Monday, traders dumped crypto assets in droves after a tumultuous day in China’s heavily indebted property market triggered a selloff in global stock markets.
Later in the week, there was a rebound move, but it was met with another selloff on Friday after the People’s Bank of China reiterated that crypto transactions are illegal. Despite this, Ethereum bulls kept their foothold and pushed prices back above $3,000, a psychological resistance level.
The sentiments were similar across some of the top crypto assets, with the benchmark cryptocurrency Bitcoin reaching an intraday high of $43,767 on Coinbase after a 2.49 percent increase. Meanwhile, UNI, the native asset of the Uniswap exchange, rose by more than 19%, becoming the top-performing crypto asset at least in the previous 24 hours.
At the same time, Ethereum’s main competitors Cardano (ADA) and Solana (SOL) performed poorly, with ADA/USD falling more than 5% and SOL/USD falling more than 3% on a 24-hour adjusted timeframe.
Demand from institutions
Ethereum gains were also fueled by a bullish report from JPMorgan & Chase. According to the study, institutional investors have begun to increase their exposure to Ethereum markets.
JPMorgan analysts attributed investors’ interest in Ethereum to the ongoing craze in the decentralized finance (DeFi) and nonfungible token (NFT) sectors. They also stated that the 21-day average Ethereum Futures premium has risen to 1% over spot ETH prices, citing Chicago Mercantile Exchange (CME) data since August.
According to CryptoQuant data, the JPMorgan report coincided with a record amount of Ether tokens being withdrawn from all crypto exchanges. At the time of publication, net ETH reserves on trading platforms stood at 18.44 million ETH, down from 23.94 million ETH the previous year.
PostyXBT, an independent analyst, also predicts a potential further price rebound in Ethereum markets, noting that the cryptocurrency’s recent declines have pushed it inside a classic accumulation range, as shown in the chart below.
“Weekly close is equally important for ETH today as price tests previous range highs as support,” the analyst observed.
“It appears to be a logical area for a higher low, and I have purchased more here for long-term bag/swing trade. After a 33 percent correction from the low, the RR appears to be favorable “top notch.”