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Ethereum price gets back to $3K as institutional investors pile into ETH futures

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Ethereum price gets back to $3K as institutional investors pile into ETH futures. Following a huge drop earlier this week that saw its values plummet to as low as $2,651 on Coinbase, Ethereum’s native cryptocurrency Ether (ETH) made a comeback on Sept. 26.

The ETH/USD exchange rate increased by 3.63% to $3,030 on the day. The move higher was a 14.3% retracement from the pair’s week-to-date low of $2,651. Indicating that traders tried to keep their optimistic bias amid possible headwinds.

Due to a slew of difficulties originating in China, Ether prices dropped last week. Traders sold crypto assets in droves on Monday, following a selloff across global stock markets due to turmoil in China’s massively leveraged housing sector.

After the People’s Bank of China repeated that crypto transactions are unlawful, a comeback occurred later in the week, but was greeted with another selloff on Friday. Despite this, Ethereum bulls held their ground and pushed prices above $3,000, a psychological barrier level.

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

The emotions were similar across some of the most popular cryptocurrencies. With Bitcoin hitting an intraday high of $43,767 on Coinbase after a 2.49% gain. Meanwhile, the native currency of the Uniswap exchange, UNI, has risen by more than 19%. Making it the best-performing crypto asset in the last 24 hours.

Meanwhile, Ethereum’s main competitors Cardano (ADA) and Solana (SOL) struggled, with ADA/USD loss surpassed 5% and SOL/USD losing more than 3% on a 24-hour adjusted timescale, respectively.

Institutional demand

A positive report from JPMorgan & Chase also helped Ethereum gain ground. Institutional investors have begun to increase their exposure to Ethereum markets, according to the report.

The growing frenzy in the DeFi and NFT sectors, according to JPMorgan analysts, is the major engine driving investors’ interest in Ethereum. They went on to say that the 21-day average Ethereum Futures premium over spot ETH prices had risen to 1%, citing statistics from the Chicago Mercantile Exchange (CME) since August.

Ethereum Futures daily price chart. Source: TradingView.com

According to statistics given by CryptoQuant, the JPMorgan study coincided with a record number of Ether tokens being removed from all crypto exchanges. At the time of publication, trading platforms’ net ETH reserves had decreased to 18.44 million ETH, down from 23.94 million ETH a year before.

PostyXBT, an independent expert, also sees a probable price comeback in Ethereum markets. Saying that the cryptocurrency’s recent losses have pushed it into a traditional accumulation zone, as illustrated in the chart below.

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

“Today, the weekly close is equally significant for ETH. As price challenges the prior range highs as support”, the analyst said.

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