Ethereum price prediction: Will ETH drop to $2,000 in September?

Even though analysts try their best, it’s clear that nothing in the crypto market is truly predictable. Many experts rely on past cycles to gain insight into future price movements. However, this approach seems to be ineffective. According to analysts, Ethereum (ETH) should have skyrocketed by now, but things have turned out quite differently. There are signs that the decline might continue in September.

ETH is falling despite ETF approval in the U.S.

No one saw this coming. The fundamentals are strong, the Ethereum ecosystem is growing, availability on crypto exchanges is low, and just recently, spot Ethereum ETFs were approved in the U.S. Yet instead of a price surge, we’re seeing a sell-off. In the last 48 hours alone, the ETH price has dropped by over 8%.

This isn’t the first price drop since the ETF approval. Since the exchange-traded funds hit the market, the Ether price has plummeted by over 30%.

Are ETFs a flop?

It was expected that the price would fall after the launch of Ethereum ETFs in the U.S. The same thing happened with bitcoin when Bitcoin ETFs were approved in January. However, the extent of the decline was unforeseen. The Ethereum funds were launched back on July 23, and today – over a month later – ETH is still trading 30% lower.

It was predictable that Grayscale would sell off large amounts of Ether after the ETF approval since the Grayscale Ethereum Trust was also converted into an ETF, allowing investors to cash out their profits. This did happen, with Grayscale selling off over $2.5 billion worth of ETH.

However, this sell-off coincides with a general market weakness that few anticipated. A weak job market in the U.S., disappointing quarterly results from leading companies, escalating tensions between Russia and Ukraine, rising tensions between Iran and Israel, high inflation, and high interest rates – the list of factors working against the crypto market is long.

Will the correction continue in September?

September is often referred to as “Septembear” because, statistically, it tends to be a bearish month, both in the stock and crypto markets. Looking at past data offers little hope. Since 2017, the ETH price has only risen twice in September.

While “Septembear” is typically followed by “Uptober,” which is known for rising prices, this means that prices could continue to fall in the coming weeks. The drop below the $2,500 mark has breached a key support level. Given that markets often experience self-fulfilling prophecies when enough investors expect and act on an event, a further correction for ETH is likely.

While it’s unlikely that the price will actually fall to $2,000, another dip to $2,200 seems quite possible.