Ethereum price has crashed in the past few days, dropping from its all-time high of $4,957 in August to $4,270 as of today. ETH remains 205% above the lowest level this year. This article looks at whether the ETH price will rise or fall in September.
Ethereum Price Has Bullish Catalysts
The ETH price has slumped over the past few days as investors focus on profit-taking following the recent surge. Still, third-party data shows that the network has some bullish catalysts that may push it higher in September.
First, there are signs that a rotation is going on from Bitcoin to Ethereum. SoSoValue data shows that spot Ethereum ETFs added over $3.87 billion in assets in August, marking its fifth consecutive month of gains, which brought the cumulative increase to over $13 billion. In contrast, Bitcoin had net outflows of over $750 million in August.
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Second, data shows that Ethereum is gaining momentum in the booming stablecoin industry as the fees have dropped. Its adjusted transaction volume in the last 30 days was $923 billion, a 48% surge from the previous month.
Ethereum’s stablecoin supply rose by 12% in the last 30 days to $153 billion, while the number of transactions rose to 21.6 million. In contrast, Tron handled $636 billion in stablecoin volume in the same period.
More data shows that companies are accumulating Ethereum. The total Ethereum held by companies such as BitMine, SharpLink, The Ether Machine, and Coinbase is approximately 3.61 million, equivalent to over $14 billion.
This accumulation is happening at a time when the supply of Ethereum on exchanges has continued to decline. As such, higher demand and falling supply mean that the price will continue rising.
Ethereum is also solidifying its market share in industries such as decentralized finance, NFTs, and gaming, where it holds a commanding market position.
ETH Price Technical Analysis
The weekly chart shows that the ETH price has slumped in the past two consecutive weeks, moving from a high of $4,957 in August to $4,260 today.
The Ethereum price recently crossed the important resistance level at $4,085, marking the highest swing in March and December of last year. Moving above that level was notable as it confirmed the bullish outlook of the inverse head-and-shoulders pattern.
Therefore, the most likely scenario is that the Ethereum price will drop and rest on the support at $4,084, then resume its bullish trend, potentially reaching $5,000.
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