Ethereum's Recent Price Movements
Ethereum's (ETH) price has been consolidating above $2,500 for over a week, leaving traders seeking more volatility. While this price stability may seem tedious to some, renowned crypto analyst Benjamin Cowen suggests that a brief recovery might occur in September, followed by potential declines in Q4. He draws comparisons to Ethereum's performance in 2016, stating, '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.'
Federal Reserve's Influence on Ethereum
QCP Capital has issued a cautionary note. Ethereum's price might fall further if the Federal Reserve makes substantial downward revisions in September. 'A large downward revision, or an especially dovish Powell, could potentially reverse the two-week equity rally and push BTC and ETH below support levels.'
Contrasting Views Among Analysts
Ethereum's price trajectory has sparked debate within the crypto community. Both bullish and bearish camps offer compelling arguments, adding to the market's uncertainty. Cowen indicates a potentially strong rally for ETH in early 2025, stating, 'Then in 2025 ETH turns green for a while.'
Market Dominance and Market Trends
According to Glassnode, Ethereum's market dominance has decreased from 16.8% to 15.2% since the crypto market hit bottom in late 2022. This decline reflects a broader trend where Bitcoin's dominance has surged from 38% to over 56%. This shift highlights a possible capital rotation towards Bitcoin. Furthermore, despite US spot ETH ETF approvals, Ethereum's market dominance hasn't increased significantly. Notably, despite some net outflows, BlackRock's ETHA ETF achieved $1 billion in net inflows within a month.
Ethereum Price Analysis and Key Levels
On the price charts, demand for Ethereum has shown improvement since the price drop on August 5th, as indicated by the Relative Strength Index (RSI) rising from oversold conditions. However, demand remains below average, suggesting a lack of strong momentum. Key short-term support levels to watch include $2,500 and $2,300. Conversely, if market sentiment improves, targets of $2,800 and $3,000 become crucial short-term bullish targets.
