Ether’s price has surged 25% since August 1, but historical data suggests the cryptocurrency may face a decline in September. The recent price climb was fueled by dovish comments from US Federal Reserve Chair Jerome Powell at the Jackson Hole symposium, which many see as a potential catalyst for growth. However, this trend could be reversed if Ether follows past patterns. According to CoinGlass, there have only been three instances since 2016 where Ether posted gains in August, followed by losses in September.
In 2020 and 2017, Ether experienced significant price swings in August, with a gain of 25.32% and 92.86%, respectively, followed by losses of 17.08% and 21.65%. In contrast, Ethereum’s performance after the first three months of 2016 was positive. This September could be different due to the presence of spot Ether ETFs and treasury companies, which were not present during past August rallies.
In fact, the total Ether held by these companies has surpassed $13 billion in value, with notable purchases made by Tom Lee’s BitMine and Arkham. Spot Ether ETFs have also seen significant inflows of $2.79 billion in August, while spot Bitcoin ETFs posted outflows of approximately $1.2 billion.
While some market participants are optimistic about the outlook for Ethereum, others caution that historical data suggests a negative trend in September. As CryptoGoos noted on X, “ETH seasonality in September during post-halving years is typically negative.” Only time will tell if this year’s pattern will break.
Source: https://cointelegraph.com/news/ether-price-rally-august-september-caution-history-shows-coinglass