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Ethereum price faces tough third quarter with potential recovery ahead

Ethereum price faces tough third quarter with potential recovery ahead

GrafaGrafa2024/09/02 05:35
By:Liezl Gambe

The Ethereum (CRYPTO:ETH) price has struggled to meet market expectations in 2024, failing to reach new all-time highs alongside Bitcoin (CRYPTO:BTC).

Despite the broader crypto market rally earlier in the year, Ethereum stalled and couldn't break past $4,000 even at its peak.

Now, with the third quarter underway, Ethereum’s performance remains challenging as this period has historically been the most bearish for the second-largest cryptocurrency by market cap.

Data from Coinglass, which tracks Ethereum’s monthly returns since its inception in 2016, shows a consistent pattern of underperformance in the third quarter—comprising July, August, and September.

For July, Ethereum ended in the green only 3 times in nine years, while August also saw six negative months out of nine.

September is not much better, with five red months out of eight.

The average monthly returns for these months are +5.51%, +6.98%, and -7.67%, respectively.

Median returns for all three months are negative, reinforcing that the third quarter is typically bearish for Ethereum.

“These performances show that the third quarter of the year has always been the most bearish,” according to the Coinglass data.

By contrast, Ethereum recorded its strongest returns in the first quarter of the year, followed by the second quarter, suggesting that as the year progresses, Ethereum’s price tends to weaken.

Looking ahead, if Ethereum’s price continues to follow this historical trend, the altcoin may not experience significant recovery before the end of 2024.

The data indicates that September could bring more losses.

However, entering the final quarter of the year might provide some relief for investors as prices could start to pick up again.

The potential for substantial gains, though, appears to be months away, likely not materializing until the first quarter of 2025, when Ethereum has historically seen its best performance.

Should this pattern hold, Ethereum could see a new all-time high by the second quarter of 2025, possibly reaching above $5,000, which would represent a 2x increase from its current price levels.

At the time of reporting, the Ethereum price was $2,433.26.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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