Ethereum has risen 25% since the beginning of August, but historical data shows that this cryptocurrency may lose momentum in September. Only time will tell if Ether will perform differently this year, with billions of dollars flowing into spot Ether ETFs and treasury companies.
Cryptocurrency trader CryptoGoos wrote in a post on X on Friday: "The seasonality of ETH in September in the years following halving tends to be negative. Will this time be different?"
According to CoinMarketCap, Ether is trading at $4,759 at the time of publication, an increase of about $952 from the opening price on August 1 of $3,807. This cryptocurrency asset surpassed a new high of over $4,867 on Friday following the dovish comments of U.S. Federal Reserve Chairman Jerome Powell at the Jackson Hole symposium.
History Shows Caution for Ether in September
Powell hinted at the possibility of interest rate cuts next month, which many in the cryptocurrency market view as a potential bullish catalyst.
However, history shows to be cautious with Ether as there have only been three instances since 2016 where Ether increased in price in August and then decreased in September, according to CoinGlass.
In 2017, the price of Ether increased by 92.86% in August before dropping by 21.65% the following month. This pattern repeated in 2020, with a 25.32% increase in August, followed by a 17.08% decrease in September. In 2021, Ether increased by 35.62% in August before falling by 12.55% in September.
Ether Increased in Price in the Last Three Months of 2016 and 2020
Interestingly, despite September witnessing declines in 2016 and 2020, Ether increased in price in each of the following three months of both years.
However, this September may unfold differently from previous years, with the emergence of spot Ether ETFs and Ether treasury companies, which did not participate in the previous August bull runs.
On August 11, the total amount of Ether held by cryptocurrency companies exceeded $13 billion in value as the price of this cryptocurrency surged above $4,300.
On Saturday, blockchain intelligence company Arkham reported that BitMine's chairman, Tom Lee, purchased an additional $45 million worth of Ether for the company, bringing BitMine's total Ether holdings to $7 billion.
August is a Crucial Month for Spot Ether ETFs
Meanwhile, according to Farside, spot Ether ETFs have seen a net inflow of about $2.79 billion just in August, while spot Bitcoin (BTC) ETFs recorded a net outflow of about $1.2 billion during the same period.
President of NovaDius Wealth Management, Nate Geraci, stated in a post on Saturday that there has been a "notable shift" in the flow of money between spot Ether ETFs and spot Bitcoin ETFs.
Meanwhile, Bitcoin's dominance, a measure of this cryptocurrency's overall market share, has decreased by 5.88% in the past 30 days to 58.19%, which many market participants often attribute to the flow of capital moving into the broader cryptocurrency market outside of BTC.
