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

]

Ethereum’s native token Ether (ETH) staged a rebound on Sept. 26 following a massive decline earlier this week that saw its prices plunging to as low as $2,651 on Coinbase.

The ETH/USD exchange rate rose 3.63% to hit an intraday high of $3,030. The upside move amounted to a 14.3% upside retracement from the pair’s week-to-date low at $2,651, showing that traders attempted to retain their bullish bias despite potential headwinds ahead.

Last week, Ether prices fell due to a flurry of issues arising from China. On Monday, traders dumped crypto assets en masse after a tumult in China’s heavily indebted property market prompted a selloff across global stock markets.

A rebound move ensued later in the week but met with another selloff on Friday after People’s Bank of China reiterated that crypto transactions are illegal. Nonetheless, Ethereum bulls maintained their foothold and pushed prices back above $3,000, a psychological resistance level.

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

The sentiments were similar across some top crypto assets, with the benchmark cryptocurrency Bitcoin hitting an intraday high of $43,767 on Coinbase following a 2.49% upside move. Meanwhile, Uniswap exchange’s native asset UNI also fared higher by more than 19%, becoming the top-performing crypto asset at least in the previous 24 hours.

At the same time, Ethereum’s top rivals Cardano (ADA) and Solana (SOL) performed poorly, with ADA/USD dropping more than 5% and SOL/USD losing over 3% on a 24-hour adjusted timeframe.

Institutional demand

Ethereum gains also followed a bullish report thifrom JPMorgan & Chase. The study noted that institutional investors have started increasing their exposure in Ethereum markets.

Analysts at JPMorgan credited the ongoing craze in the decentralized finance (DeFi) and nonfungible token (NFT) sector as the primary driver behind investors' interest in Ethereum. They added that the 21-day average Ethereum Futures premium climbed to 1% over spot ETH prices, citing the Chicago Mercantile Exchange (CME) data recorded since August.

Ethereum Futures daily price chart. Source: TradingView.com

The JPMorgan report coincided with a record amount of Ether tokens getting withdrawn out of all crypto exchanges, as per data provided by CryptoQuant. At press time, the net ETH reserves on trading platforms had dropped to 18.44 million ETH compared to 23.94 million ETH a year ago.

Related: Ethereum drops more than Bitcoin as China escalates crypto ban, ETH/BTC at 3-week low

Independent analyst PostyXBT also anticipates a potential further price rebound in Ethereum markets, noting that the cryptocurrency’s latest declines had pushed it inside a classic accumulation range, as shown in the chart below.

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

“Weekly close equally as important for ETH today as price tests the previous range highs as support,” the analyst noted.

“Seems like a logical area to make a higher low and I have bought more here for long-term bags/swing trade. RR looks favorable after a 33% correction from the local top.”

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

On-Chain Metrics Turn Bullish for Bitcoin and Ethereum

]

Get daily crypto briefings and weekly Bitcoin market reports delivered right to your inbox.

Key Takeaways Bitcoin has seen a significant increase in idle tokens exchanging hands, which may lead to high volatility.

The ETH supply on exchanges has plummeted, while prices sit in the “opportunity zone.”

BTC and ETH could soon resume their uptrend if these on-chain metrics remain intact.

Share this article

Bitcoin and Ethereum appear bound for high volatility as several on-chain metrics suggest that buying pressure is accelerating. Still, these cryptocurrencies must overcome one obstacle to resume the uptrend.

Bitcoin Whales Are Back

Bitcoin and Ethereum could be ready for a bullish move.

Bitcoin has rebounded strongly after diving below $41,000 earlier today. The leading cryptocurrency was able to gain over 3,500 points after the steep correction to reach a high of $43,750 at the time of writing.

Santiment’s Token Age Consumed index recorded a significant spike in idle BTC now exchanging hands in the past few hours as prices tumbled.

This on-chain metric measures how many coins have recently moved addresses multiplied by the number of days since they last moved. Although the movement of old tokens is not necessarily a leading price indicator, it has led to spikes in volatility over the last few months.

If history repeats itself, Bitcoin could experience further volatility based on recent token movements.

Whales behavior suggests that the incoming spike in volatility could be to the upside. In the last 24 hours, wallets on the network with 100 to 10,000 BTC have added more than 80,000 BTC to their holdings, worth $3.32 billion.

The sudden increase in upward pressure suggests that large investors are trying to buy at a discount in preparation for an upswing.

Although the odds appear to favor the bulls, Bitcoin faces stiff resistance ahead. IntoTheBlock’s In/Out of the Money Around Price (IOMAP) model shows that 1.2 million addresses have previously purchased 1.05 million BTC between $43,150 and $45,670.

These holders could be trying to break even on their underwater positions as prices attempt to advance further, containing the upward pressure. Therefore, only a decisive daily candlestick close above this supply barrier could signal the beginning of a new uptrend.

On the other hand, the IOMAP cohorts reveal that the most significant support wall underneath Bitcoin lies between $41,830 and $43,000. Roughly 760,000 addresses are holding nearly 430,000 BTC around this price level. Slicing through this demand zone could result in a downswing to $39,000 as there is no other interest area that could keep falling prices at bay.

Ethereum Looks Undervalued

The number of Ethereum tokens held on cryptocurrency exchanges continues to decline at an exponential rate. Over the last month alone, more than 1.35 million ETH have been depleted from trading platforms, representing a 6.63% decline.

The declining ETH supply on known cryptocurrency exchange wallets paints a positive picture for Ethereum’s future price growth. It technically reduces the number of ETH available to sell, consequently capping the downside potential.

Moreover, the Market Value to Realized Value (MVRV) index suggests that Ethereum is undervalued at the current price levels. This fundamental index measures the average profit or loss of addresses that acquired ETH in the past month. Every time the 30-day MVRV moves below 0%, a bullish impulse tends to follow.

The 30-day MVRV ratio is now hovering at -8.6%, indicating that ETH sits in the “opportunity zone.” The lower the MVRV ratio becomes, the higher the probability of an upward price movement.

Although Ethereum is sitting on top of weak support, transaction history shows that it only has one obstacle to overcome to resume the uptrend.

More than 1.2 million addresses have acquired approximately 8.6 million ETH between $3,185 and $3,275. A decisive candlestick close above this resistance barrier could propel ETH towards $4,000 or new all-time highs.

Still, investors must pay close attention to the $2,900 support level as any signs of weakness around it could encourage market participants to sell. Under such unique circumstances, Ethereum could fall to $2,500.

Share this article

Ethereum-Based Gaming Altcoin Surges After Launching on Crypto Exchange Binance

]

A free-to-play gaming altcoin is seeing serious growth after being listed on global crypto trading platform Binance.

Illuvium (ILV) is a decentralized role-playing game (RPG) utilizing non-fungible tokens (NFTs). The open-world adventure game is built on the Ethereum (ETH) blockchain and its native crypto asset just made its debut on Binance.

The altcoin witnessed a 40% spike as word of its addition to Binance spread on Tuesday, according to CoinGecko.

The game is designed to allow players to collect NFT creature tokens through online battle, using the ILV token as an in-game currency. Players can also stake the ILV coins they earn, and then use them to vote on future protocol updates and earn a share of the game’s revenue.

Illuvium also utilizes the ImmutableX blockchain to allow users to avoid paying the gas fees normally associated with trading NFTs, according to project developers.

“One of the primary issues NFT projects and users are currently facing is the cost of performing transactions on the Ethereum network.

With limitations on the number of transactions ETH can handle, users on the network have bid up gas prices to ensure their transactions quickly settle… ImmutableX changes this, allowing users to trade their NFTs without paying gas fees.”

Illuvium is trading at $577 at time of writing, a 11% decrease from its 24-hour high of $641, according to CoinMarketCap.

Don’t Miss a Beat – Subscribe to get crypto email alerts delivered directly to your inbox

Check Latest News Headlines

Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

Featured Image: Shutterstock/Andrush

follow us