Key Points
- Most cryptocurrencies experienced gains this week, reversing an earlier midweek dip.
- Ethereum (ETH) and Bitcoin (BTC) are on course for their third consecutive weekly gains.
After a slow start to the week, most cryptocurrencies saw an increase in value between Wednesday and Thursday.
At the time of writing, Ethereum (ETH) was trading at $2,689, with a predicted close above $2,770 for the first time since August 24.
Ethereum Outperforms Bitcoin
In the second half of September, ETH has surpassed Bitcoin (BTC) with a gain of 16.34% since 15 September. Coinglass data showed that ETH’s price increased by 11.26% last week, while BTC saw a 7.38% increase.
However, over the last three months, Ethereum has declined by 20.75%. This is notable given the anticipation of a rally after the launch of a U.S spot Ethereum exchange-traded fund (ETF) on July 23. The ETF has so far produced mixed results.
Bitcoin Leads in Monthly Returns
With three days left in the month, Bitcoin is leading Ethereum in monthly returns. BTC’s price trajectory could result in double-digit monthly profits if it maintains a price above $65K. In contrast, Ether is set for a 5.70% gain for September.
As we approach the weekend, speculators are watching the monthly closes for both cryptocurrencies. At the time of writing, Bitcoin was trading near $66,000, with support around $62,800, while Ethereum was holding steady above $2,600.
Analysts have set short-term price targets in the $68k to $70k range for BTC and in the $2,760 to $2,820 range for ETH. However, the possibility of a pullback, particularly if momentum slows, suggests caution for long positions.
If momentum does falter, bears could take control over the weekend and drive prices down, as happened in July. Bitcoin’s downside targets include a return below $62,000, with a potential drop as low as $57,400. Ether, on the other hand, faced resistance at $2,770 on August 24, pulling its price back to $2,430 three days later.
Lastly, Ethereum’s potential for growth is being limited by an increase in Ether issuance, which could impact the spot movement. Data from Ultrasound Money shows that 54,098.4 ETH has been added to the supply over the last 30 days, resulting in a 0.547% annualized inflation rate.
