Is Ethereum Price About to Experience Relief Rally?
Altcoins | Ethereum | 3 Months Red
Amid the heightened bearish sentiment in the crypto space, Ethereum (ETH) price has continued to shrink every week. The large-cap altcoin, with a fully diluted valuation of about $279 billion and a daily average traded volume of around $15 billion, has dropped over 35 percent since July to trade around $2,329 on Tuesday during the early New York session. Unlike Bitcoin, the supply of Ethereum on centralized exchanges has increased in the past two months by around 250k units. The demand for Ethereum among institutional investors has continued to decline in the recent past, as shown by the poor performance of the US spot Ether ETFs.
According to crypto analyst Alan Santana, Ethereum price is likely to go down in the near term for as long as it continues to register more monthly bearish signals. Furthermore, Ether’s price, against the US dollar in the weekly, has suffered low bullish momentum, with both the weekly MACD and RSI hovering in bearish zones. Additionally, the ETH/BTC pair has gradually been shrinking in the past year, suggesting the altseason has not yet begun and more investors are protecting their capital through Bitcoin and stablecoins. However, Santana highlighted that a potential relief rally in October and November could end the losing streak for Ethereum in the subsequent months.
Crypto Market Picture
The crypto industry is expected to change trajectory in the near term when the United States Federal Reserve initiates the first interest rate cuts on September 18. However, most experts believe the crypto industry could first experience another drop, attributed to sell-the-news impact, before rebounding in the subsequent months. Another major event in the crypto industry will be the decision that the US voters make in the upcoming general election.
