Key Takeaways
- Ethereum returns to USD 3,000 after several days of price turbulence and fall
- Ethereum rose after JPMorgan & Chase issued a positive report.
- PostyXBT, an independent analyst, predicts a possible price increase in Ether.
The ETH/USD rate increased by 3.63 percent to a day's high of $3,030 during trading.
However, traders tried to maintain their optimistic bias in face of possible headwinds ahead, as shown by the 14.3% rise from the pair's week-to-date low of $2,651.
Ether's value dropped last week as a result of a slew of problems originating in China.
A selloff in global stock markets triggered by turmoil in China's highly leveraged housing sector sparked a huge exodus of crypto traders on Monday.
However, when the People's Bank of China reaffirmed that crypto transactions are prohibited on Friday, prices began to rise again.
It was a good day for Ethereum bulls, as prices rose again over the crucial $3,000 mark.
Some of the most popular cryptocurrencies saw similar emotions, with Bitcoin, the benchmark, reaching an intraday high of $43,767 on Coinbase after a 2.49 percent gain.
UNI, the native cryptocurrency of the Uniswap exchange, grew by over 19% and is now the best-performing crypto asset, at least for the last 24 hours.
Cardano (ADA) and Solana (SOL), two of Ethereum's main competitors, also fared badly, with ADA/USD falling by over 5% and SOL/USD falling by over 3% on a 24-hour adjusted timescale.
JPMorgan & Chase issued a positive report, which contributed to Ethereum's rise.
According to the findings of the research, institutional investors are becoming more active in the Ethereum market.
According to JPMorgan's analysts, the current frenzy in the nonfungible token (NFT) and decentralized finance (DeFi) sectors is what's driving interest in Ethereum.
According to the Chicago Mercantile Exchange (CME), the 21-day average premium on Ethereum Futures has risen to 1 percent above spot ETH prices since August.
According to CryptoQuant's statistics, the JPMorgan study came out at the same time as a record number of Ether tokens were being removed from all crypto exchanges.
At the time of writing, trading platforms' net ETH reserves were down to 18.44 million ETH, from 23.94 million ETH a year earlier.
According to Bloomberg, the Chinese government is tightening its crypto-ban even more, sending Ethereum and Bitcoin down to three-week lows.
PostyXBT, an independent cryptocurrency analyst, believes that Ethereum's recent price drops have driven it into a typical accumulation zone, as shown in the chart below.
When the market tries to test the prior range highs, the weekly close will be equally significant, the analyst said.
What could be motivating investors to buy ETH futures now?
