The affair of the soaring Ethereum, my dear readers, was as sharp and unexpected as finding a singular sardine atop one’s breakfast kipper. A rally of some twenty percent since the start of August, don’t you know, leaving the confounded thing trading at a positively indecent figure-something in the region of four-thousand-and-something dollars. Dovish remarks from a certain Fed chappie, one Powell, at a symposium in a place called Jackson Hole, had sent the price positively piercing through the ceiling like a startled pigeon. Many of the crypto crowd, a excitable lot at the best of times, saw this as the spark for more jollity.
The Grim Spectre of September
But history, that dreadful spoil-sport, offers a cautionary note. According to the solemn digit-jockeys at CoinGlass, there have been only three occasions since 2016 where Ether, having cut a rug in August, proceeded to trip over it and land face-first in the canapes the following month.
In 2017, the stuff leapt a frankly ridiculous 92% in August, only to perform a backward somersault of 20% in September. A similar ghastly business occurred in 2020. And again in 2021! It’s enough to make a man clutch his portfolio and reach for the sherry. A fellow on the social medias, one CryptoGoos, put it rather bluntly: the seasonality in September during these post-halving years is about as positive as a summons from one’s aunt.
$ETH seasonality in September during post-halving years is typically negative.
Will this time be different?
– CryptoGoos (@crypto_goos) August 22, 2025
Of course, a pattern does not a prison make. The word from the trenches is that the whole market structure and the type of blighter buying the stuff are now a different kettle of fish altogether. Why, in 2016 and 2020, these short-term September losses were followed by a spiffing multi-month recovery. So while history matters, it doesn’t get the final word, much like a butler offering unsolicited advice on one’s necktie.
New Money, New Nonsense
The flows into these spot Ether ETF contraptions have been large enough to make a parson raise an eyebrow. Reports from a firm called Farside suggest these ETFs saw a frankly vulgar $2.70 billion in net inflows during August, while the Bitcoin ones were leaking clients like a faulty punt.
Furthermore, great lumbering corporations now hold a sizeable chunk of the world’s Ether on their balance sheets, a sum totaling over thirteen billion dollars! A monumental figure. One chap, a Tom Lee of BitMine, has just gone and bought another forty-five million’s worth, pushing his company’s stack to an almost incomprehensible seven billion.
This, you see, changes the very mathematics of the thing. These enormous institutional stacks and ETF demand can apparently make these short-term price moves stick around longer than an unwelcome houseguest.
Capital, it seems, is doing the foxtrot from one asset to another; Bitcoin’s dominance has slipped five percent in thirty days, which the clever-clogs in the market attribute to funds prancing off into other speculative ventures.
What’s a Trader to Do?
So what is a chap to do? Traders and portfolio managers, a nervy breed, will likely keep one eye on the macro signals and the other on the flow data, giving the impression of a man with a particularly aggressive squint. A softer interest rate outlook from this Powell fellow is, of course, a bullish factor for risk assets. But the seasonality and these previous post-August declines are very good reasons to keep one’s powder dry and one’s selling finger poised.
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2025-08-24 21:07