Ethereum’s [ETH] price has been hovering above $2,500 for over a week, creating a dull environment for crypto traders who thrive on volatility.
Renowned crypto analyst Benjamin Cowen suggests that Ethereum, the largest altcoin, might only see a brief recovery in September before potentially facing further losses in the fourth quarter. Cowen bases this outlook on a similar ETH pattern observed in 2016.
“#ETH / #USD monthly candles continue to track 2016 perfectly. If it continues to play out, it would suggest #ETH is green in September, and then red Oct-Dec.”
Cowen stated.
However, the path forward for ETH remains uncertain. QCP Capital has warned that ETH could experience a significant drop if the Federal Reserve makes a substantial downward revision in September.
“A large downward revision, or an especially dovish Powell, could potentially reverse the 2-week equity rally and push #BTC and #ETH below support levels,”
QCP Capital noted.
The crypto community has been divided on ETH’s future, with both bearish and bullish camps presenting compelling arguments. Despite the mixed views, Cowen remains optimistic about a potential strong rally for ETH in early 2025.
“Then in 2025 #ETH turns green for a while,”
Cowen added.
In the meantime, Ethereum’s market dominance has decreased from 16.8% to 15.2% since the crypto market bottomed in late 2022, according to Glassnode.
“As the second-largest asset in the ecosystem, Ethereum has recorded a dominance decline of 1.5%, remaining relatively flat over the past two years,”
Glassnode reported.
In contrast, Bitcoin’s [BTC] dominance has surged from 38% to over 56% during the same period, indicating a potential capital shift toward the largest digital asset.
Even the approval of US spot ETH ETFs did little to boost ETH’s market dominance. Despite some ETFs experiencing net outflows since their debut, BlackRock’s ETHA had a remarkable run, reaching $1 billion in net inflows within a month.
On the price charts, demand for Ethereum has improved since the drop on August 5th, as indicated by the Relative Strength Index (RSI), which has climbed from the oversold territory. However, demand remains below average, signaling a lack of strong momentum for price movement.
Key short-term support levels to monitor include $2,500 and $2,300 on the lower side. On the other hand, if sentiment improves, $2.8k and $3k are crucial short-term bullish targets.
