The beginning of September 2017 was a difficult one for Ethereum price. We’ve seen the price go from almost 400 USD to 200 USD in less than 2 weeks. Our article today will cover what happened in September in terms of news and price action.
This review is part of the monthly price and news updates our research Team at Ethereumprice.today prepares at the end of each month. The goal is to provide our readers with a coverage of what happened in the world of Ethereum for the price action and the news part.
Ethereum Price action in September 2017
After the sharp retrace early September, buyer stepped up and Ethereum price recovered 50% of the losses within 4 days. Ether price fell off the ascending blue channel in the process and as mentioned in our Ethereum price forecast for september 2017, the price was in a sideways movement for the rest of the month.
This is what we published back then:
It is still vely likely we see Ethereum price sideway between 200 and 320 USD for the rest of the month. We expect the Ethereum Community to provide some updates around then about the progress of the Metropolis upgrade. This upgrade should increase Ethereum anonymity and the deployment of the Raiden Network.
Obviously, positive news will help Ethereum reclaim its ascending channel, which will happen if Ether trades above 370 USD. Negative or concerning updates might add pressure to Ether price as well as the already pressured cryptocurrency market.
Short term, Ethereum price needs to cross above 320 USD to signal a Bullish move, above 370 USD to reclaim the ascending channel and might struggle to clear the resistance area between 250 and 270 USD in the process.
The 250 to 270 USD resistance area was cleared after the 2nd attempt and as we write our article today, Ethereum is still trying to break above the 320 USD area. The price is still moving sideways in the purple channel and will probably continue to do so till a break above (or below) happens.
Events impacting Ethereum’s price in September 2017
The positive news that helped support Ethereum price in September were mostly related to the Ethereum Metropolis upgrade progress and The SEC updating the Etherindex filing 5 days after the appointment of Dalia Blass. Investors saw this as a bullish event for Ethereum holders. It is a positive thing for it shows the interest in Ethereum but we still need more information to be able to truly gauge the next move. An approved Etherindex is definitely going to propulse the demand for the cryptocurrency higher.
As for the Positive updates on the Metropolis upgrade, we’ve provided an extensive coverage that you can read here. What we think is important to keep an eye on is the impact of this upgrade on Ether Inflation. The reduced miner reward will reduce the number of tokens in circulation, which should increase the value of Ether. Note that the reduction for miners is in the # of tokens, but the increase in Ethereum price since early 2017 makes it still very profitable for miners.
The Raiden network testing and the Byzantium fork upgrade is still moving forward and so far, the team seems to be on top of their game. The only issue we heard about is that since the launch of the test network, it keeps getting malicious attacks. The attacks so far have been unsuccessful.
So far the upgrade is seen as a positive thing by investors and enthusiasts. In fact, the relative stability in Ethereum price is a good indicator of investors confidence in what’s coming up.
ICO’s as a method of raising funds were raising concerns all around the Globe. During the month of September, we heard traditional media launch its recurring “Crypto is a bubble” series of articles. The US SEC issued warnings about how some ICOs could be fraudulent and how investors should be aware of the risk associated with this type of fund raising.
But the main reason for the drop in the Crypto market was initially caused by China’s Crackdown on Bitcoin exchanges and the ICO Ban. What started as a rumor ended up materializing and some Chinese Bitcion exchanges including BTCC, China’s oldest Bitcoin exchange. They had to cease operations by the end of September.
Shortly after, South Korea announced their ICO ban and Thailand’s SEC published their positive point of view on ICOs as a way for legitimate startups to gain funding but plans to regulate this enviroment.
We believe ICOs are extremely high risk investment types. Some of them might be legitimate and some of them might be fraudulent or straight forward not worth the investment. Why Ethereum investors need to keep an eye on news impacting ICOs is simply because these new tokens are built on Ethereum so their success increases the demand for Ether. Some ICO’s being deemed illegal or even banned doesn’t mean that Ethereum as a technology or even Ether is at risk.
What Ethereum’s investors specifically need to keep an eye on for the upcoming weeks, in addition to the Metropolis upgrade of course, is news from South Korea. This country is now a major player in the Ethereum ecosystem as mentioned in this article. This is in agreement with our prediction dating July 2017 about how South Korea could have a major impact on Ethereum price in the near future and the reasons why.
Our Ethereum Price Outlook for October 2017 will be published in the next 24 hours.