Cryptocurrencies were trading in the green on Friday, rebounding from early-week slumps to deliver gains across the board. Wednesday and Thursday saw significant market-wide advances, with leading cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH) paving the way. This rally helped reverse a midweek dip, sparked by sluggish trading earlier in the week.
At press time, Ethereum was priced at $2,689, showing renewed strength in recent weeks. Bulls are now eyeing a close above $2,770, a level ETH has not surpassed since August 24. Notably, Ethereum has outpaced Bitcoin in September, accumulating a gain of 16.34% since mid-month, while Bitcoin rose by 7.38%. However, both digital assets have slowed down this week, raising speculation about a potential cooldown ahead of the weekend.
Ethereum’s Strong September Performance
Ethereum has been one of the standout performers over the past few weeks. According to Coinglass, ETH surged by 11.26% last week, further solidifying its position as one of the strongest cryptocurrencies as it heads into Q4. However, the altcoin remains down 20.75% over the last three months, driven largely by the disappointing debut of the U.S. spot Ethereum exchange-traded fund (ETF). The much-anticipated ETF launch in July was seen as a potential catalyst for ETH’s price, but results have been mixed so far, leading to underperformance relative to initial expectations.
Despite these challenges, Ethereum’s fundamentals remain solid, with analysts watching closely for a breakout above $2,770. While a surge past this resistance level could trigger renewed bullish sentiment, ETH’s supply dynamics may weigh on its price action. Data from Ultrasound Money shows that 54,098.4 ETH has been added to the supply over the last 30 days, reflecting an annualized inflation rate of 0.547%. This increase in Ether issuance could temper upward price pressure in the short term.
Bitcoin Bulls Target Double-Digit Monthly Gains
Bitcoin, meanwhile, has managed to hold its ground, trading near $66,000 at press time. If BTC maintains this price level, it is poised to lock in double-digit monthly gains for September, marking a notable recovery after the cryptocurrency’s rough summer. Currently, Bitcoin’s short-term support is set at $62,800, with a bullish price target of $68K to $70K in the near term.
However, momentum exhaustion looms large. Analysts caution traders against overextending long positions, as a potential pullback could materialize over the weekend. Should Bitcoin’s momentum wane, support levels below $62,000 could be tested, with a possible slide down to $57,400 if the market takes a bearish turn.
Outlook for Q4
As Q4 approaches, both Bitcoin and Ethereum are positioned to close September on a high note. Bitcoin’s dominance remains intact, though Ethereum has narrowed the gap with its impressive mid-September rally. Both cryptocurrencies face key resistance levels that will likely determine their performance heading into the final quarter of 2024.
Also Read: BlackRock Report – Bitcoin Outperforms Gold And S&P 500 By 22% Amid Global Instability
While analysts remain cautiously optimistic, traders should keep an eye on potential retracements, especially given the heightened volatility in recent months. Whether Bitcoin can hit $70,000 or Ethereum can sustain a close above $2,770 will largely depend on broader market sentiment and liquidity conditions.
With the cryptocurrency market set for a strong finish in September, speculators are eagerly awaiting the next move as bulls and bears battle for control.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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