- ETH could see a relief rally in September.
- However, according to analysts, losses in the fourth quarter could be likely for the altcoin.
Ethereums [ETH] The price has been consolidating above $2500 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 could only make a brief recovery in September before factoring in possible additional losses in the fourth quarter. Van Cowen projection was based on the similar ETH pattern observed in 2016.
‘#ETH/#USD monthly candles continue to track 2016 perfectly. If this holds, it could indicate #ETH being green in September, then red in October-December.”
Source:
What’s next for the ETH price?
However, QCP Capital warned that ETH could fall even further if the Fed makes a major downgrade in September.
“A major downgrade, or a particularly dovish Powell, could potentially reverse the two-week stock rally and push #BTC and #ETH below the support level.”
Interestingly enough above mixed ETH views have been prevalent in the crypto community for a while now. ETH bear and bull camps have made strong arguments for the price outlook, increasing uncertainty.
However, Cowen pointed out that a strong ETH rally could be feasible in early 2025.
‘Then #ETH will turn green for a while in 2025.’
In the meantime, Glassnode marked that Ethereum’s market dominance has fallen from 16.8% to 15.2% since crypto’s low point in late 2022.
“As the second largest asset in the ecosystem, Ethereum has recorded a 1.5% drop in dominance, remaining relatively flat over the past two years.”
Source: Glassnode
On the contrary, that of Bitcoin [BTC] Dominance has risen from 38% to over 56% over the same period, underscoring the potential capital rotation into the largest digital asset.
Interestingly, even the US ETH ETF approvals have not increased ETH’s market dominance. Even though the ETFs are trading net outflow Since its debut due to Grayscale’s ETHE outflow, BlackRock’s ETHA has had a wild run. ETHA achieved net inflows of $1 billion in one month.
ETH price analysis
Source: ETH/USD, TradingView
On the price charts, demand has improved since the August 5 dump, as indicated by the RSI (Relative Strength Index), which has risen from oversold territory. However, demand was not above average, indicating that there is no strong price momentum.
As such, the key short-term support levels were $2500 and $2300 at the bottom of the price action. Conversely, as sentiment improved, $2.8k and $3k were crucial short-term bullish targets.
