Key points:
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ETH supply on exchanges has dropped, hinting at a potential increase in production.
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Weekly trading volume on Ethereum’s decentralized exchanges (DEX) surged by 47%, indicating a more positive market sentiment.
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Historical figures show that ETH prices typically rise by about 4.77%.
Ether (ETH) prices climbed past $4,000 on Monday, reflecting a 3.5% increase over the last day. This uptick has kindled hopes of a renewed bull market for ETH this October.
Declining ETH Supply on Exchanges
As stated by Cointelegraph, the ether supply in centralized exchanges has dropped to its lowest level since 2016, largely thanks to increased accumulation by institutions.
Cryptoquant analyst Cryptome has identified three main reasons for this exodus of ETH from exchanges:
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Investors are pulling their funds for greater independence.
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Many are moving ETH to staking platforms or different exchanges.
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Some are simply transferring it to new wallets.
The total outflow of Ethereum from exchanges is also increasing, reaching levels reminiscent of the late stages of the 2022 bear market when quantitative easing was aggressively utilized.
A significant portion of ETH was taken out of exchanges during the FTX fallout. An analyst remarked:
“When demand rises, the rally commences. A decrease in reserves sets the stage for that rally.”
Surge in Ethereum DEX Volume
The bullish sentiment is further supported by a substantial 47% rise in DEX activities on the Ethereum network over the past week.
Ethereum’s DEX volume jumped from $22.9 billion to $33.9 billion recently. Notably, this increase was also seen in Layer 2 solutions like Base, Arbitrum, and Polygon.
Compared to competitors, the recovery was somewhat conservative—Solana’s DEX activity rose by 6%, while BNB saw an 8.3% increase.
Within Ethereum’s ecosystem, the Maverick protocol grew by 30%, and UNISWAP saw a 26% increase from the previous week. Historically, advancements in Ethereum’s DEX volume align with rising prices amid greater demand for ETH.
Will ETH Prices Surge in October?
ETH/USD experienced a 6% decline in September. However, October historically averages a 4.77% gain, suggesting that ETH prices could potentially approach $4,300.
According to crypto analyst Marzell, “October often ignites bullish momentum… prepare for your ETH pump!”
Another analyst, Midas, anticipates a strong Q4, drawing parallels to 2020 when the third quarter’s patterns led to significant profits.
This article does not serve as investment advice or recommendations. All trading carries risks, and readers should conduct their own research before making financial decisions.
