Ether rebounded more than 3% to hit an intraday high of $ 3,112 after a massive decline earlier this week, bringing the price down to $ 2,651. This shows that traders have managed to maintain their bullish bias despite the potential trouble ahead.

Last week, Ether fell out of China due to a number of issues. On Monday (Sept. 20), traders continued to ditch after real estate giant Evergrande faced a possible default on concerns that it could trigger a market downturn.

A recovery movement followed, but it led to another sell-off on Friday (September 23) after the People’s Bank of China re-confirmed that cryptocurrency transactions are illegal. So far, however, the ether bulls have maintained their strength and pushed the price back above $ 3,000, a level of psychological resistance.

Daily frame ether price chart | Source: TradingView

A similar sentiment played out for some of the top crypto assets, Bitcoin’s intraday high of $ 43,767 after rising 2.49%. Meanwhile, Uniswap’s native asset UNI also rose more than 19% and became the top performing crypto asset in the past 24 hours.

Meanwhile, Ethereum’s top rivals Cardano (ADA) and Solana (SOL) saw drops of 5% and 3%, respectively, within 24 hours.

The demand of institutional investors for ether is increasing rapidly

Ether’s rally follows a bullish report from JPMorgan & Chase. The study notes that institutional investors have started to increase their exposure to the Ethereum market.

JPMorgan analysts cite the continued excitement in the DeFi and NFT sectors as the main reason why investors are interested in Ethereum. They added that the average 21-day premium for ether futures contracts rose 1% above the spot market, citing data recorded by the Chicago Mercantile Exchange (CME) since August.

Ether. Futures daily price chart | Source: TradingView

JPMorgan’s report coincided with a record amount of ether being withdrawn from all exchanges, according to CryptoQuant. At the time of going to press, ether reserves on the exchanges are down to 18.44 million, far less than 23.94 million a year ago.

Independent analyst PostyXBT also predicts a potential rebound in the Ethereum market, noting that the recent decline in the overall crypto market has pushed it into a classic accumulation area.

$ ETH

Weekly graduation equally important for #ETH today as price tests previous range highs as support.

Seems like a logical area to take to a higher low and I bought more here for the long term bag / swing trade.

RR looks cheap after a 33% correction from the local top. pic.twitter.com/aV77HGsIv9

– posty.eth (@PostyXBT) September 26, 2021