After a dramatic decline in Ethereum’s native token Ether earlier this week, which saw its prices plummet to as low at $2,651 via Coinbase, Ether experienced a rebound on September 26.
The ETH/USD exchange rate climbed 3.63% to reach an intraday high at $3,030. This upside move was 14.3% higher than the pair’s weekly low of $2,651. It shows that traders tried to maintain their bullish bias in spite of potential headwinds.
China’s flurry caused Ether prices to fall last week. After turmoil in China’s property market, which is heavily indebted, traders sold their crypto assets in masse on Monday. This prompted a selloff in global stock markets.
Later in the week, a rebound movement took place but was met by another selloff Friday after People’s Bank of China reaffirmed that cryptocurrency transactions are illegal. However, Ethereum bulls remained firm and drove prices up to $3,000, which is psychological resistance.
Daily chart of the ETH/USD exchange rate. Source: TradingView.com
The sentiments were similar for some of the top crypto assets. Bitcoin, the benchmark cryptocurrency, reached an intraday high at $43,767 on Coinbase after a 2.49% upward move. Uniswap’s native asset UNI, which is traded on the Uniswap platform, also performed well by more than 19% and became the best-performing crypto asset for at least the past 24 hours.
Despite this, Ethereum’s top competitors Cardano (ADA/USD) and Solana(SOL) did poorly. ADA/USD dropped more than 5%, while SOL/USD lost over 3% in a 24-hour adjusted period.
A bullish report by JPMorgan & Chase also influenced Ethereum’s gains. According to the study, institutional investors have increased their exposure to Ethereum markets.
JPMorgan analysts attributed the continuing craze for decentralized finance (DeFi), and nonfungible tokens (NFT), as the main driver of investors’ interest in Ethereum. The average 21-day Ethereum Futures premium jumped to 1% over spot ETH price, citing Chicago Mercantile Exchange data from August.
Chart showing daily prices for Ethereum Futures. Source: TradingView.com
According to CryptoQuant data, the JPMorgan report coincided in record amounts of Ether tokens being withdrawn from all crypto exchanges. As of press time, net ETH reserves on trading platforms were at 18.44 million ETH, compared to 23.94 millions ETH a year earlier.
Related: Ethereum drops more that Bitcoin as China increases crypto ban, ETH/BTC at 3-week lowest
PostyXBT, an independent analyst, also predicts a possible price rebound in Ethereum markets. He notes that the cryptocurrency’s recent declines have pushed it within a classic accumulation range as shown in this chart.
The latest accumulation range is shown on the ETH/USD weekly chart. Source: TradingView.com, PostXBT
The analyst stated that ETH’s current weekly close is equally important as the price test of the support range highs.
“Seems like a good area to build a higher low. I have purchased more here for long-term bags/swing trading. After a 33% correction at the local top, RR looks positive. You should do your research before making any investment or trading decision.
Eileen Wilson –Technology and Energy
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