4 bearish and 3 bullish scenarios for the price of Ethereum (ETH) in September

This is if ethereum can overcome three major price hurdles that lie ahead in September.

The introduction of low-fee blobs in the Dencun upgrade for layer-2 blockchains to quickly scale the network to peers has unleashed a torrent of activity on ethereum’s decentralized smart contract network.

Since then, eth gas fees on the ethereum base layer have dropped significantly. While that has reduced validator revenue, there has been a flourishing of activity on the low-fee L2s.

ethereum L2 Monthly Active Users doubled after Dencun went live in March. Meanwhile, fees for using Base, Mantra, Starknet, Blast, and OP Mainnet have decreased dramatically.

But ethereum has struggled this year to reflect its improvements and future prospects in a consolidated market move. By the time it dropped to $2,400 this week, its price was back to where it was in February. By comparison, bitcoin has fared a little better this year.

So, will Ether’s price continue to falter or will it have an edge over competitors like BNB, Solana, XRP, Tron, and Cardano in the short to medium term?

4 Advantages of ethereum Price in 2024

Here are four advantages ethereum has going forward:

1. Another bitcoin wrapped in ethereum

<blockquote class="twitter-tweet”>

Put your idle btc to work natively on ethereum.

21 btc on ethereum gives you:
• btc which is native to ethereum
• No Lock-And-Mint technology
• 100% backed by btc
• Institutional-grade security
• Deep liquidity
• Operational excellence

This is what you need to know(/5) image.twitter.com/CGY97mqeut

— 21.co (@21co__) twitter.com/21co__/status/1830984327296930247?ref_src=twsrc%5Etfw” data-wpel-link=”external” target=”_blank”>September 3, 2024

21co, the owner of bitcoin ETF issuer 21 Shares, has just introduced another Wrapped bitcoin asset on ethereum.

This is a reminder: your bitcoin is a final settlement in a brutally scarce currency on the most secure Web3 layer blockchain, and ethereum represents so many things you can do with it without simply handing it over to the system you're disrupting.

While bitcoin is in a long-term holding phase due to its network effects and the growth prospects of the value of each Satoshi due to its ultimately addressable global market, when the dam breaks and pent-up demand spills over, ethereum is certainly a place where holders will spend it.

From finance to insurance, contracts, CRM, supply chain management, gaming, and online database solutions, major smart contract networks like ethereum have a bright future ahead of them.

2. Institutional adoption continues

Wall Street has so far been very cautious about getting its hands on ethereum ETFs, and outflows have created resistance for Ether’s price. But the overall institutional stance toward the asset remains second only to bitcoin, even as corporate project managers and institutional hedge funds flirt with ethereum competitors like Solana and Cardano.

However, ethereum and the ERC20 Layer-2 Polygon (MATIC) protocol ethereum-and-polygon-dominate-cryptos-institutional-investments-what-that-means-for-traders-202406301230″ data-wpel-link=”external” target=”_blank”>more power of the institutional products currently available on Web3. A recent post by Adriano Feria x, a popular eth promoter on social media, outlined the progress of corporate projects using ethereum.

“I hate to break this to #ethereum skeptics, but $eth is on its way to securing solid institutional adoption, led by industry giants like Coinbase, Circle, BlackRock, and most recently, Sony,” Feria wrote.

With Sony's announcement on August 22 that ethereum-sony-s-big-bet-signals-a-bullish-future-for-the-cryptocurrency/ar-AA1pY4U7″ data-wpel-link=”external” target=”_blank”>It is being launched With its own ethereum Layer-2 blockchain, Soneium, there could be more market alpha in eth’s future.

3. ethereum price technical chart

eth just had its worst month in two years, dropping 22% in August. Therefore, mean reversion theory dictates that its price will tend to return to its mean trend over time, providing support for a rally. In terms of buyers, Ether was on offer in August.

eth may be undervalued eth-price-predictions-2024″ data-wpel-link=”external” target=”_blank”>based on Expert predictions from some of the most active funds, publications and banks in the Web3 space, in a recent CoinGecko study:

<blockquote class="twitter-tweet”>

What is the ethereum price prediction for 2024?

Our latest study reveals that leading analysts, media and fund managers predict twitter.com/hashtag/ethereum?src=hash&ref_src=twsrc%5Etfw” data-wpel-link=”external” target=”_blank”>#ethereum will average $6,404 by the end of 2024.

Read the full study: https://t.co/FzuIYpuE9D image.twitter.com/Lj5TXYtqkF

— CoinGecko (@coingecko) twitter.com/coingecko/status/1824468673308037196?ref_src=twsrc%5Etfw” data-wpel-link=”external” target=”_blank”>August 16, 2024

4. Pivot of the Federal Reserve's moderate monetary policy regime

<blockquote class="twitter-tweet”>

The fact that new coins are produced means that the money supply increases by a planned amount, but this does not necessarily result in inflation.

If the supply of money increases at the same rate as the number of people using it, prices remain stable.

— Satoshi Nakamoto Quotes (@QuotesNakamoto) twitter.com/QuotesNakamoto/status/1809248449935605772?ref_src=twsrc%5Etfw” data-wpel-link=”external” target=”_blank”>July 5, 2024

The Federal Reserve Chairman’s announcement in August of a shift towards lowering interest rates is likely to galvanize cryptocurrency markets. As the supply of dollars increases, there is additional liquidity to boost financial markets such as stocks and cryptocurrencies.

There is also a deep-rooted ethos among cryptocurrency investors to hedge dollar inflation using cryptocurrencies, especially those that strictly limit new supplies.

ethereum is particularly well suited as one of these solid altcoins. After Merge converted it from a mined cryptocurrency to a staked cryptocurrency in September 2022, it also introduced a burn feature that removes a small amount of Ether when transactions are made.

This helps limit supply and allows eth tokens to maintain their purchasing power parity against other currencies like bitcoin and the US dollar.

3 Price Hurdles for ethereum in September:

1. September stagnation is a headwind

September stocks-september-effect-economy-presidential-election-inflation-fed-2024-8705709″ data-wpel-link=”external” target=”_blank”>It is historically A month of bad luck for financial markets. In the stock market, it is the only calendar month that has had a negative ROI on average in the last 98 years. bitcoin–ethereum-price-crypto-markets-today-56b46bc7″ data-wpel-link=”external” target=”_blank”>has typically There has also been a choppy and sluggish performance for cryptoassets, with seasonally high volatility and lower prices.

That means it can be a great entry point for cryptocurrency investors to buy assets at a good price. It's also not typically the time of year to sell to maximize profits or minimize losses.

2. Electoral uncertainty in the United States

Markets are also concerned about the outcome of the US election in November. A Harris victory could lead to higher prices, higher taxes and more costly regulations.

A Trump victory could lead to another multi-trillion-dollar trade war with half the rest of the world, something that proved costly for Wall Street last time around.

3. bitcoin Price Gravity Well

ethereum’s valuation is closely tied to btc’s spot price. Throughout the four-year cycle around bitcoin supply halvings, there is typically a mild bear market around this time after the event, leading to a multi-month rally to new all-time highs. That will have an impact on altcoin prices.

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