As the crypto market continues to struggle, Ethereum (ETH) is attempting to hold a crucial zone as support to resume its bullish rally. However, some analysts suggest that the cryptocurrency will see another choppy September before the long-awaited Q4 run.
The cryptocurrency began the new month attempting to reclaim the $4,500 level as support for the third consecutive day, but failed to hold this crucial area, dropping below its monthly opening.
According to CoinGlass data, Ethereum has seen double-digit negative returns five times since 2016, losing 21.65% in 2017. Meanwhile, it has only recorded a positive return in the double-digits once, with a 14.53% performance in 2016.
Nonetheless, the market watcher noted that if the altcoin’s performance stumbles this month, “history suggests the real rebound could come right after.” Notably, October and November have historically been green months for ETH, with an average return of 4.7% and 7.8%, respectively.
According to the analyst, the cryptocurrency could see a 10%-20% correction this month to the $3,900-$3,400 range, which served as an accumulation zone before the August breakout.
The analyst warned that the lack of momentum at the start of the month could see the cryptocurrency retest the range lows, where the 200-Day Moving Average (MA) and Exponential Moving Average (EMA) are situated in the 4-hour chart.
Per the post, the multi-year trendline has been turned from resistance into a launchpad that will propel the cryptocurrency’s price to the $7,000 level once the breakout begins.
As of this writing, Ethereum is trading at $4,268, a 4% decline in the daily timeframe.
