4 Bear and 3 Bull Scenarios for Ethereum (ETH) Price in September

This is if Ethereum can overcome three major price hurdles in September,

The introduction of Dencun’s upgrade of low-cost blobs for Layer 2 blockchains to quickly scale the network to peers has unleashed a flood of activity on Ethereum’s decentralized smart contract network.

Since then, ETH gas fees on the Ethereum base layer have decreased significantly. While this has reduced revenue for validators, there has been growth in low-cost L2 activity.

Ethereum L2 monthly active users doubled after Dencun went live in March. Meanwhile, the fees to use Base, Mantra, Starknet, Blast, and OP Mainnet have dropped dramatically.

But Ethereum has struggled this year to reflect its improvements and future prospects in a consolidated market move. When it dropped to $2,400 this week, its price was back to where it was in February. By comparison, Bitcoin has fared slightly better this year.

So will the price of Ether continue to beat, or does it have an advantage over competitors like BNB, Solana, XRP, Tron and Cardano in the short to medium term?

4 Ethereum Price Benefits in 2024

Here are the four advantages that Ethereum has going forward:

1. Another Bitcoin wrapped in Ethereum

Put your idle BTC into Ethereum natively.

21BTC to Ethereum gives you:
• Ethereum native BTC
• No Lock-And-Mint technology
• 100% backed by BTC
• Institutional grade security
• Deep liquidity
• Operational excellence

Here’s what you need to know(/5) pic.twitter.com/CGY97mqeut

— 21.co (@21co__) September 3, 2024

21co, the owner of Bitcoin ETF issuer 21 Shares, recently introduced another Wrapped Bitcoin asset on Ethereum.

Here’s a reminder: Your Bitcoin is a final settlement in a brutally scarce currency on the more secure Web3 layer blockchain, and Ethereum represents so many things you can do with it without just handing it over to the establishment that’s altering

Although 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 global addressable market ultimately, when the dam breaks and the accumulated demand spills over, Ethereum is certainly a place where holders will spend it.

From finance, insurance, contracts, CRM, supply chain management, gaming and online database solutions, leading smart contract networks like Ethereum have a great future ahead of them.

2. Institutional adoption marches

So far, Wall Street has only laid capricious hands on Ethereum ETFs, with the exits creating resistance to Ether’s price. But the overall institutional position 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 ERC20 Layer-2 protocol Polygon (MATIC) power most of the institutional products currently available on Web3. A recent X post by Adriano Feria, a popular ETH booster on social media, described the march of corporate projects using Ethereum.

“Hate to break it to #Ethereum doubters, but $ETH is well on its way to strong institutional adoption, led by industry giants like Coinbase, Circle, BlackRock, and most recently Sony,” he wrote fair

With Sony’s announcement on August 22 that it will launch its own Ethereum Layer-2 blockchain, Soneium, there could be more market alpha in ETH’s future.

3. Ethereum Price Chart Techniques

ETH just had its worst month in two years, down 22% in August. Therefore, the theory of mean reversion dictates that its price will tend to retrace toward its average trend over time, giving it support for a rally. In terms of buyers, Ether was on sale in August.

ETH may be undervalued according to expert predictions from some of the most active funds, publications and banks in the Web3 space, in a recent CoinGecko study:

What is the Ethereum price prediction for 2024?

Our latest study reveals what leading analysts, outlets and fund managers predict #Ethereum it will average $6,404 by the end of 2024.

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

— CoinGecko (@coingecko) August 16, 2024

4. Pivot of the Fed Dovish regime

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

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

— Quotes by Satoshi Nakamoto (@QuotesNakamoto) July 5, 2024

It is likely that the presidency of the Federal Reserve announced in August a pivot to reduce interest rates galvanize the crypto markets. As dollar supplies increase, there is additional liquidity to pump financial markets like stocks and cryptocurrency.

There is also a built-in ethos among crypto investors to hedge dollar inflation using cryptocurrencies, especially those that strictly limit new supplies.

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

This helps to limit supplies and for ETH tokens to maintain their purchasing power parity with other currencies such as Bitcoin and the US dollar.

3 price obstacles for Ethereum in September: 1. September is a headwind

September is historically a down month for financial markets. In stocks, it is the only calendar month to return an average negative ROI over the past 98 years. It has also typically been choppy and slow for crypto assets, with seasonally high volatility and lower prices.

This means it can be a great entry point for crypto investors to buy assets at a good price. Nor is it usually the time of year to sell to maximize gains or minimize losses.

2. The US electoral uncertainty

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 expensive regulations.

A Trump victory could lead to another multi-trillion dollar trade war with half the rest of the world, which was expensive for Wall Street last time.

3. Bitcoin Price Gravity Well

The valuation of Ethereum is closely related to the spot price of BTC. Throughout the four-year cycle around Bitcoin’s supply halving, there is usually a mild bear market around this time after the event, leading to a rise in several months to new record highs. This will have an impact on altcoin prices.

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