Ethereum’s *Momentous* October: Why ETH Price is Primed for a Powerful Pump Beyond $4K
Ethereum’s recent surge past the significant $4,000 mark has ignited considerable optimism among investors. Many now anticipate a substantial Ethereum pump throughout October. This rebound suggests a strong potential for ETH to resume its bull run, driven by compelling on-chain, historical, and technical indicators. Let’s delve into the key factors supporting this positive outlook.
Declining Exchange Supply Signals Potential Ethereum Rally
One primary indicator for a potential Ethereum rally is the noticeable drop in ETH supply on centralized exchanges. This supply has reached its lowest point since 2016. Growing institutional accumulation largely drives this trend. CryptoQuant analyst CryptoMe highlights several reasons for these declining ETH reserves:
- Investors are withdrawing assets into self-custody.
- Users are moving ETH into staking protocols or new wallets.
- Significant transfers are occurring to new, private wallets.
Total Ethereum exchange outflows are also on the rise. These outflows now mirror levels seen during the late phases of the 2022 bear market. At that time, quantitative tightening was at its peak. Furthermore, the FTX crisis subsequently led to numerous ETH tokens being withdrawn from exchanges. Such reduced supply on exchanges often signals decreased selling pressure. Consequently, it prepares the ground for a potential rally when demand increases. This dynamic often precedes a significant Ethereum pump.
Surging DEX Volume Ethereum Fuels Bullish Sentiment
Bullish sentiment is clearly reflected in the substantial increase in decentralized exchange (DEX) activity on the Ethereum network. Weekly DEX volume jumped an impressive 47%. This increase saw activity rise to $33.9 billion from $22.9 billion the prior week. Notably, this trend also extended to Ethereum’s layer-2 solutions, including Base, Arbitrum, and Polygon. In contrast, competitors experienced more modest gains. Solana’s DEX activity increased by 6%, and BNB’s by 8.3%. Ethereum’s positive volume trends include a 30% growth for Maverick Protocol and a 26% rise for Uniswap.
Historically, increasing DEX volume Ethereum has accompanied price growth. This correlation reflects rising on-chain demand for ETH. For instance, the Ethereum price nearly doubled during a 276% increase in weekly DEX volume. That period, between June 30 and August 14, saw volumes hit record highs of $40 billion. Therefore, the current surge in DEX activity points towards strong underlying demand for the asset. This could further support a robust ETH price prediction for the coming weeks.
Historical Data Supports an ETH October Rally and Price Prediction
The Ethereum price experienced a 6% loss in September. This aligns with historical price behavior, according to data from monitoring resource CoinGlass. However, October often presents a different picture. Historically, October averages 4.77% gains for ETH. This pattern suggests the Ethereum price could rise closer to $4,300 from its current levels. Crypto analyst Marzell commented on X, stating, “Ethereum monthly returns (USD history) show a clear pattern that October and beyond is a bullish season.” Marzell further added, “October is often the ignition… get ready for the Q4 $ETH pump!”
Fellow analyst Midas similarly anticipates a very bullish Q4 based on past performance. Midas observed that “ETH is repeating the same Q3 2020 pattern.” The last time such a performance occurred, it was followed by more than 100% gains in Q4. These historical trends provide a strong basis for an optimistic ETH price prediction. They indicate that the stage is set for a potential significant upward movement. Investors are closely watching these patterns for confirmation of a strong ETH October rally.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
