The cryptocurrency market has been in a bearish trend for the past two weeks, but Ether was able to embark on a mini-rally thanks to the push from institutional investors
The cryptocurrency market hasn't performed very well in recent weeks. Bitcoin has failed to mount a challenge towards the $50,000 range and is now trading above $44,000. Ether, on the other hand, experienced one of its worst weeks in recent months, dropping as low as $2,651 last week.
However, the second-largest cryptocurrency by market cap has since overcome that low level and is now trading above the $3,000 mark again. This latest development comes after ETH rose by more than 10% over the past 24 hours to currently trade above $3,100 per coin.
Ether's latest rally can be attributed to a recent report by the leading investment bank JPMorgan Chase. According to the analysts from the major bank, institutional investors are switching to Ether futures from Bitcoin futures, thus indicating a rising demand for exposure to the second-largest cryptocurrency.
The report said that big money investors are moving away from Bitcoin futures trading and focusing on Ethereum futures as expectations for Bitcoin weaken. The analyst added that in September, Bitcoin futures price on the Chicago Mercantile Exchange (CME) was lower than the actual spot price of the leading cryptocurrency.
The JPMorgan analysts added that the latest trend shows a much healthier demand for Ethereum compared with Bitcoin from institutional investors. Bitcoin has been the centre of attention for most institutional investors over the past few years.
However, the trend has been shifting in recent months, and investors are increasingly gaining exposure to other leading cryptocurrencies such as Ether and Solana (SOL). The analysts also expect Ethereum to continue to face stiff competition from other leading smart contract platforms like Cardano and Solana.
Ether is currently the best-performing cryptocurrency amongst the top 10 by market cap. However, the other leading cryptocurrencies are also trading in the green zone as the broader cryptocurrency market starts to recover from the recent dip in prices.