Ethereum‘s price throughout August worried investors due to intense volatility. Hopes for recovery are high from September, but many on-chain and chart analyses suggest a different direction. Ethereum’s price, which is below $2,800, may continue like this in the foreseeable future. It may even rise to $2,900, but the altcoin leader’s rise in September might be limited to this.
What’s Happening on the Ethereum Front?
The reason is that experts indicate a relatively bearish-neutral outcome for Ethereum. According to Alvin Kan, COO of Bitget Wallet, Ethereum holders might act to liquidate their assets. Recently, the Ethereum Foundation transferred 35,000 Ethereum to Kraken as part of its 2024 budget, signaling a sale process worth approximately $94 million. Kan commented on the matter:
“This move has alarmed whale investors, who might choose to sell in advance.”
This sale movement may have caused FUD or panic. Additionally, Julio Moreno, Head of Research at Cryptoquant, highlighted a bigger concern in his special statement:
“One thing we pay attention to is the evolution of Ethereum’s total supply and its relationship with network fees. Ethereum’s total supply has been steadily increasing since early April, shortly after the Dencun upgrade. The total supply is currently at 120.313 million Ethereum, the highest level since May 2023. This increase in supply represents 53% of the decrease in Ethereum supply since The Merge in September 2022.”
Ethereum Chart Analysis
In the next few weeks, Ethereum’s price may witness a mix of decline and recovery. Currently, Ethereum is trading at $2,471, and along with the factors mentioned above, the macro price movement indicates a drop to the lower trend line at $2,300. A rise from this line could start a trend for Ethereum’s price and push it above $2,681. Expectations are turning this level into support, preparing Ethereum for a rise in October.
On the other hand, if the 4th quarter expectation creates an earlier bullish momentum, Ethereum could rise further. Breaking the $2,930 resistance could result in a breakout from the descending wedge. This would invalidate the thesis that the bearish trend is neutral and prepare Ethereum to rise above $3,000.
