Ether’s performance in August 2024 has captured attention after the cryptocurrency posted a notable 25 percent gain this month.
The price of Ether started at $3,807 on August 1 and currently trades at $ 4,759, showing strength. On Friday, it briefly touched new highs above 4,867 dollars after Jerome Powell hinted at rate cuts ahead.
Market participants saw Powell’s comments at the Jackson Hole symposium as supportive of risk assets, including digital currencies.
However, analysts studying historical price movements suggest traders remain cautious when approaching September after August rallies in Ether.
Since 2016, Ether has recorded August gains on only three occasions, each followed by a significant September decline afterward.
Data from CoinGlass shows that September has historically delivered an average loss of 6.42 percent for Ether.
Ether’s 2017 rally reversed with a steep decline
In 2017, Ether soared 92.86 percent during August before retreating 21.65 percent during September, reflecting a sharp seasonal pattern. The same occurred in 2020, with its rise of 25.32 percent in August before falling 17.08 percent in September immediately.
Again, in 2021, it advanced 35.62 percent during August but dropped 12.55 percent the following September, completing the repeating sequence.
Despite September’s traditional weakness, several unique market factors could reshape Ether’s performance this time around for investors.
For the first time, billions are flowing into spot Ether ETFs, which have already attracted 2.79 billion dollars.
At the same time, corporate treasury holdings of Ether recently surpassed 13 billion dollars in value during August price gains.
BitMine expands Ether holdings with major purchase
On Saturday, blockchain intelligence firm Arkham reported BitMine chairman Tom Lee purchased 45 million worth of Ether.
That addition lifted BitMine’s overall holdings to nearly 7 billion dollars, placing the firm among the largest institutional owners.
Meanwhile, spot Bitcoin ETFs recorded 1.2 billion dollars in net outflows during August, according to data from Farside.
Nate Geraci, president of NovaDius Wealth Management, noted shifting inflows suggesting a growing preference for Ether products over Bitcoin.
Bitcoin dominance fell 5.88 percent during the last 30 days, signaling stronger investor interest in the broader cryptocurrency market.
For now, traders await September’s arrival to determine whether Ether can break its historical cycle or follow previous seasonal setbacks.
