Analysts expect ETH to rebound after dropping to $3500 in September
Although ETH reached an all-time high in August, analysts generally believe that September may face a 20% deep correction, which aligns with historical seasonal patterns and may provide investors with an opportunity to accumulate at lower levels.
According to a post by Benjamin Cowen, founder of ICT Crypto, from a technical analysis standpoint, ETH could drop near the 21-week exponential moving average (EMA), around the $3500 level, a decrease of about 20% from the current price.
He emphasized that this correction has been anticipated since ETH fell below $1500 in April and is considered a normal fluctuation within a bull market, not altering the overall judgment of reaching new highs before the end of the year.
Additionally, historical data shows that September is usually a weak month for Ethereum. According to CoinGlass statistics, in the past decade, ETH has declined in September in 5 out of 10 years, with an average decline of about 5.74%.
Especially during bull market cycles, the extent of the correction is often more pronounced, such as a 21.65% drop in September 2017 and a 17.08% drop in the same period in 2020. However, in the months following these adjustments, ETH has shown a strong rebound and reached new highs.
This phenomenon also confirms Benjamin Cowen's view that if a significant correction occurs this month, it could become a medium-to-long-term buying opportunity.
Despite ETH facing selling pressure in the short term, large investors are still actively accumulating Ethereum. On-chain monitoring data from Arkham Intelligence shows that a whale holding $5 billion in Bitcoin has increased its position in ETH by $1 billion and staked it all.
Additionally, according to observations by Anthony Sassano, the number of ETH purchased by spot Ethereum ETFs and treasury institutions in August reached 33 times the network issuance for that month, indicating strong institutional demand.
KOL 'DeFi Dad' believes that based on Ethereum's core position in stablecoins, RWA assets, DeFi, and the tokenization of traditional assets, its market cap is expected to reach $35 trillion between 2032-2034, potentially surpassing Bitcoin.
In the short term, the market is still in a correction phase. Although ETH rebounded to $4416 during Tuesday's Asian afternoon, it has not reversed the weak pattern of recent highs and lows moving downwards in sync.
In summary, analysts expect the market correction to continue until late September, but with a gradual warming of market sentiment and fundamental support, ETH is expected to resume its upward trend in the fourth quarter.
