Ether’s Recent Performance
Since the start of August, Ether’s price has risen by 25%, but historical trends indicate that the cryptocurrency might lose momentum in September.
Only time will reveal if Ether (ETH) behaves differently this year, especially with billions being invested in spot Ether ETFs and treasury companies.
Crypto trader CryptoGoos commented in an X post on Friday, “ETH seasonality in September during post-halving years is typically negative. Will this time be different?”
As of the time of this publication, Ether is trading at $4,759, showing an increase of about $952 from its opening price of $3,807 on August 1, based on data from CoinMarketCap. The cryptocurrency reached new heights above $4,867 on Friday following dovish remarks from US Federal Reserve Chair Jerome Powell at the Jackson Hole symposium.
Powell suggested a potential interest rate cut next month, which many in the crypto sphere see as a likely bullish trigger.
However, historical data advises caution for Ether, as there have only been three occasions since 2016 where Ether recorded gains in August, each followed by a drop in September, according to CoinGlass.
- In 2017, Ether rose 92.86% in August before falling 21.65% in the next month.
- The same pattern occurred in 2020, with a 25.32% increase in August followed by a 17.08% decline in September.
- In 2021, Ether achieved a 35.62% rise in August before decreasing by 12.55% in September.
Interestingly, despite losses in September 2016 and 2020, Ether experienced upward movement in the subsequent three months in both years.
This September, however, could diverge from historical trends, thanks to the involvement of spot Ether ETFs and Ether treasury companies, which were absent during past August rallies.
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As of August 11, the total amount of Ether held by companies with crypto treasuries exceeded $13 billion in value, coinciding with Ether’s price soaring past $4,300.
On Saturday, blockchain intelligence firm Arkham reported that BitMine chairman Tom Lee purchased an additional $45 million worth of Ether for the firm, raising BitMine’s total holdings to $7 billion.
On the other hand, spot Ether ETFs have seen around $2.79 billion in net inflows just in August, while spot Bitcoin (BTC) ETFs recorded about $1.2 billion in net outflows during the same timeframe, as reported by Farside.
Market Dynamics
Nate Geraci, president of NovaDius Wealth Management, indicated in a post on Saturday that there has been a “notable shift” in inflows between spot Ether ETFs and spot Bitcoin ETFs.
Simultaneously, Bitcoin dominance, which reflects its overall market share, has decreased by 5.88% over the past month to 58.19%. This decline is often linked to capital moving into a wider range of cryptocurrencies beyond BTC.
