3 Reasons Why Ethereum Can Hit $5,000 in September

At about $4,363, Ethereum (ETH) is once again trading in a critical area. There are indications that Ethereum might be preparing for another leg higher, possibly toward the $5,000 mark in September, even though price action has cooled off from the July rally’s explosive surge.

These three factors could lead the second-biggest cryptocurrency to make that move:

Solid technical base: At $4,164, ETH has successfully defended the 50-day EMA, making it a dynamic support level. Notwithstanding the general market uncertainty, consolidation above $4,000 indicates that buyers are defending the base. The path toward retesting the $4,600-$4,800 resistance becomes very likely if ETH maintains this level. From there, a clean breakout would put $5,000 right in front of you.
ETH/USDT Chart by TradingView
Market domination outside of Bitcoin: The distance between Ethereum and Bitcoin has been growing over the past few weeks. Despite that, Ethereum was holding onto its gains, while Bitcoin has found it difficult to recover lost ground.
Favorable setup for the macro and on-chain: With increasing network activity and adoption, ETH continues to have a positive long-term structure. Ethereum may rise since its RSI of 52 indicates that it is neither overbought nor oversold. Support levels for ETH are stacked at $4,164; $3,865 and $3,213, providing a number of buffers against downside risk. A push toward $5,000 might be encouraged by this stability if market sentiment improves.

But there are still difficulties. With investment flows dropping in recent weeks, institutional interest in Ethereum appears to be waning. It appears that both institutional and retail players are reluctant to make large commitments, as evidenced by the steady decline in trading volumes. Ethereum’s rally might stall before reaching the milestone if this pattern persists.