After a 25% rise in August, Ethereum 's price may be headed for a downward trend in September. However, with the introduction of spot ETFs and institutional investors, the future of Ethereum could be poised for a new direction.
Since 2016, the same pattern has repeated whenever Ethereum price has increased in August: a decline in September. This seasonal trend has resulted in an average loss of 6.42% for the cryptocurrency during the month of September.
Although gains have been recorded in August during post-halving years, September has generally shown negative performance for Ethereum. In 2017, 2020, and 2021, the cryptocurrency fell by 21.65%, 17.08%, and 12.55% respectively after strong increases in the previous month.
However, signs indicate that September could be different this year. The massive influx of capital into Ethereum spot ETFs and the growing interest from treasury companies in the cryptocurrency could disrupt historical trends.
In August, ETH spot ETFs recorded nearly $2.79 billion in net inflows, while Ethereum holdings by companies exceeded $13 billion. Additionally, Bitcoin’s dominance decreased by 5.88% over 30 days, indicating a rotation of investors toward the broader crypto market.
Despite these positive factors, investors must remain cautious in the face of crypto market volatility. Historical data indicates that September has generally been a difficult month for Ethereum, even if gains followed afterward.
Only time will tell if Ethereum will manage to overcome this negative seasonal trend in September. The massive flows of institutional capital could indeed change market dynamics. But the cryptocurrency will need to withstand profit-taking after reaching a new ATH this week.
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Charles Ledoux is a Bitcoin and blockchain technology specialist. A graduate of the Crypto Academy, he has been a Bitcoin miner for over a year. He has written numerous masterclasses to educate newcomers to the industry and has authored over 2,000 articles on cryptocurrency. Now, he aims to share his passion for crypto through his articles for InvestX.
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