Ethereum price hits $ 3,000 again as institutional investors focus on ETH futures

Ethereum’s native token, Ether (ETH) rebounded on September 26th after a massive drop earlier this week that sent its prices on Coinbase to $ 2,651..

The ETH / USD exchange rate rose 3.63% to hit an intraday high of $ 3,030.. With that upside move, it was up 14.3% from the $ 2,651 low hit that time of the week, showing that traders were trying to maintain their bullish bias despite possible headwinds.

The week before, ether prices fell due to a number of issues in China. On Monday, traders dumped crypto assets en masse after a turmoil in the heavily indebted Chinese real estate market will cause a sell-off on the world’s stock markets.

Ethereum price hits $ 3,000 again as institutional investors focus on ETH futures
Ethereum price hits $ 3,000 again as institutional investors focus on ETH futures

There was a rebound over the week, but a new sale took place on Friday after the People’s Bank of China reiterated that cryptocurrency transactions are illegal. Nevertheless, Ethereum bulls held their own, pushing prices back above $ 3,000, a level of psychological resistance.

ETH / USD daily price chart. Source: TradingView.com

The sentiment was similar for some of the major crypto assets, with the price of Bitcoin, the benchmark cryptocurrency, hits an intraday high of $ 43,767 on Coinbase after an upward movement of 2.49%. In the meantime, the native asset of the Uniswap exchange, UNI, also increased by more than 19%which – at least – has become the top performing crypto asset in the past 24 hours.

At the same time, Ethereum’s main competitors Cardano (ADA) and Solana (SOL) fared poorlywith the ADA / USD pair losing more than 5% and SOL / USD more than 3% in a tight 24-hour timeframe.

Institutional demand

Ethereum gains also came after a bullish report from JPMorgan Chase. First seen by Business Insider, the study found that institutional investors have started increasing their exposure to the Ethereum markets.

Some JPMorgan analysts cited the current excitement over the decentralized finance (DeFi) and non-fungible tokens (NFT) sector as the main driver of investor interest in Ethereum. They added that the average 21-day premium of Ethereum futures was up 1% from ETH spot prices, citing data from the Chicago Mercantile Exchange (CME) recorded since August.

Ethereum futures daily price chart. Source: TradingView.com

JPMorgan’s report coincided with the withdrawal of a record number of ether tokens from all cryptocurrency exchanges, according to CryptoQuant. At the time of going to press, Net ETH reserves on trading platforms had dropped to 18.44 million ETH, compared to 23.94 million ETH a year ago.

Also the independent analyst PostyXBT expected a potential additional price jump in the Ethereum markets, and found that cryptocurrency’s recent declines had pushed it into a classic accumulation area, as shown in the graph below.

ETH / USD weekly price chart showing the latest accumulation range. Source: PostXBT, TradingView.com

The weekly close is just as important for ETH today as the price tests the highs of the previous range as support.Said the analyst.

“It seems like a logical zone to take a higher low and I bought more here for bag / swing trading.

The views and opinions expressed are those of the author only and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you will need to do your own research when making a decision.

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