- ETH could see a relief rally in September.
- However, losses in the fourth quarter could be likely for the altcoin, according to the analyst.
Ethereum (ETH) The price has been consolidating above $2,500 for over a week, a boring scenario for crypto traders who thrive on volatility.
However, according to renowned crypto analyst Benjamin Cowen, the largest altcoin may only see a brief recovery in September before potentially posting further losses in the fourth quarter. projection was based on the similar ETH pattern seen in 2016.
“#ETH/#USD monthly candles continue to track 2016 perfectly. If this continues, it would suggest that #ETH is green in September, then red in October-December.”
Source: X
What’s next for ETH price?
However, QCP Capital warned that ETH could fall even lower if the Fed makes a significant downgrade in September.
“A significant downgrade, or a particularly dovish Powell, could potentially reverse the two-week stock market rally and push #BTC and #ETH below support levels.”
It is interesting to note that the above mixed Opinions on ETH have been prevalent in the crypto community for quite some time. Both the ETH bearish and bullish camps have made strong arguments about the price outlook, deepening its uncertainty.
However, Cowen stressed that a strong ETH recovery could be possible in early 2025.
“Then in 2025 #ETH will go green for a while.”
In the meantime, Glassnode highlighted that Ethereum’s market dominance has fallen from 16.8% to 15.2% since the crypto bottomed in late 2022.
“As the second largest asset in the ecosystem, Ethereum saw a 1.5% decline in dominance, remaining relatively stable over the past two years.”
Source: Glassnode
In contrast, Bitcoin (BTC) dominance has increased from 38% to over 56% over the same period, highlighting a possible rotation of capital into the largest digital asset.
Interestingly, even the approvals of spot ETH ETFs in the US have not strengthened ETH’s market dominance. Despite ETFs recording net gains outings Since its inception due to Grayscale’s ETHE outflows, BlackRock’s ETHA has had a wild ride. ETHA reached $1 billion in net inflows in one month.
ETH Price Analysis
Source: ETH/USD, TradingView
On the price charts, demand has improved since the August 5 drop, as indicated by the RSI (Relative Strength Index), which has moved out of oversold territory. However, demand was not above average, indicating a lack of momentum for prices.
Thus, the key short-term support levels to watch were $2,500 and $2,300 on the lower side of the price action. Conversely, if sentiment improved, $2,800 and $3,000 were crucial short-term upside targets.
