Ethereum Climbs Above $3,000 as Steady Crypto Recovery Continues

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Ethereum
climbed above $3,000 early on Thursday, as the world’s second-largest cryptocurrency continued to show signs of recovery.

The crypto asset, which hit $4,000 early in September for the first time since May, slipped to $2,720 earlier this week amid the global selloff in risk assets triggered by the

China Evergrande

(ticker: 3333.Hong Kong) crisis.

Ethereum, along with other cryptocurrencies, has made a steady recovery in recent days, breaking above the key $3,000 level on Wednesday and moving toward $3,100 on Thursday. The price of Bitcoin, which briefly dropped below $40,000 on Tuesday, also continued to recover, trading 0.3% up at $43,726.

While there is no direct link between cryptocurrencies and the world’s most indebted developer, the Evergrande crisis led to investors shunning riskier assets earlier in the week.

Some of the fears surrounding the property giant’s potential demise and its wider impact on global markets appear to have subsided in recent days, with stocks gaining back some ground.

However, Chinese authorities have asked local governments to prepare for the potential downfall of the property developer, The Wall Street Journal reported Thursday, citing officials familiar with the matter.

The officials described the actions being ordered as “getting ready for the possible storm.”

Write to Callum Keown at callum.keown@dowjones.com