Ethereum Poised for Q4 Rally: 3 Factors Pointing Towards Bright Future

The price of Ethereum experienced a 3.5% decline in the U.S. market session, currently hovering around $2500. This dip aligns with the broader pullback in the crypto market. However, there are several reasons to believe that Ethereum (ETH) could see a positive trend in the fourth quarter, with October possibly being a standout month.

Is it Ethereum’s Time to Shine?

Historical data indicates that Ethereum tends to perform well in the fourth quarter, with an average return of 20.8%. If this trend continues, Ethereum could be on track for a significant uptrend that may take it past the $3,000 mark.

Moreover, data from Santiment shows that whales holding between 100,000 and 1 million ETH have been actively accumulating since August. The increase in supply held by large holders suggests a strong level of confidence in the asset, potentially signaling a bullish trend.

Why Ethereum Has Failed to Rally So Far?

Despite the positive indicators, Ethereum is still 48% below its all-time high of $4,891, in contrast to Bitcoin which is only down by 15% from its ATH. This underperformance can be attributed to the focus on Bitcoin’s narrative as “digital gold” and the interest in Bitcoin ETFs.

However, the high correlation between Bitcoin and Ethereum, which previously limited ETH’s independent rally, could now work in its favor to drive a higher price surge.

ETH Price Forecast:

a) ETH Price Longterm Outlook Forecasts $10k

In the long term, Ethereum has the potential to reach $10,000. Factors such as healthy retracement and whale accumulation could drive this upward momentum. The Fib extension tool suggests a rally to $7310, followed by a further surge to $10540.

b) Daily Ethereum Price Chart Hints at $3.5k Before 2024

The recent drop in ETH price to $2500 may be followed by an 18% decline to $2000, supported by the 61.8% Fibonacci retracement level. However, a bounce from this support level could propel the price to reach $3,500 in the near future.

Frequently Asked Questions (FAQs)

Historical data suggests Ethereum tends to perform well in Q4, with an average growth of 20.8%. Whale accumulation and increased confidence from large holders signal a potential bullish trend ahead.

Ethereum’s underperformance compared to Bitcoin is largely due to the focus on Bitcoin’s “digital gold” narrative and interest in Bitcoin ETFs.

In the short term, Ethereum may face a potential 18% drop to $2000, supported by the 61.8% Fibonacci retracement level.

Disclaimer: The information provided is based on personal opinions and market conditions. Conduct your own research before investing in cryptocurrencies.

About the Author

Sahil Mahadik is a full-time trader with a keen interest in technical analysis and cryptocurrency trading. He closely monitors market movements and explores trading opportunities in the financial markets.