Important takeouts:
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The decline in ETH supply on the exchange indicates a potential gathering in production.
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Ethereum Weekly Dex volume increased by 47%, reflecting improved sentiment.
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Historical data shows that ETH prices are up 4.77% on average.
Ether (ETH) prices rose above $4,000 on Monday after a 3.5% rise in the last 24 hours. This recovery sparked hope that ETH would resume bull run in October.
Decreased ETH supply on exchanges
As reported by the Cointelegraph, ether supply in centralized exchange has fallen to a lowest point since 2016, driven by an increase in institutional accumulation.
Cryptoquant Analyst Cryptome points out three reasons why ETH is being removed from exchange reservations.
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Investors withdrawing from independence.
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Move your ETH to Staking or Exchange.
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Transfer to a new wallet.
Total Ethereum exchange outflow is also on the rise. These leaks are currently at the level seen in the late stages of the Bear Market in 2022, when quantitative tightening was at the “hottest point,” and wrote the encryption in Saturday’s Quick Take analysis.
Related: EtherETFS Log Log Straight of Flow, $796 million cited as price falls 10%
Following this, a considerable number of ETH tokens have been withdrawn from exchanges due to the FTX crisis.
“Is ETH a boom?” the analyst added:
“When demand is triggered, the rally begins. A decline in reserves prepares the ground for that rally.”
Ethereum Dex Volume jumps 47% in one week
Bully sentiment is also reflected in the weekly leap of 47% of decentralized exchange (DEX) activities on the Ethereum network.
Ethereum’s Dex volume has increased 47% over the past seven days to $33.9 billion from the previous $22.9 billion. This was also seen in Layer 2 solutions such as Base, Arbitrum, and Polygons.
The market recovery was modest among Ethereum competitors, with Solana’s DEX activity rising 6% and BNB rising 8.3%.
Ethereum’s positive volume trends include a 30% growth in the Maverick protocol and a 26% increase in UNISWAP compared to the previous week.
The increase in Ethereum’s DEX volume has historically been accompanied by price growth amid rising ETH’s on-chain demand. For example, ETH prices rose by 276% to $40 billion between June 30th and August 14th.
Ether price to see the “pump” in October?
Eth/USD lost 6% in September, according to data from monitoring resource Coinglass.
However, October is an average profit of 4.77%, meaning that ETH prices will approach $4,300 from the current levels.
“The history of Ethereum Monthly Returns shows a clear pattern of bullish seasons after October,” Crypto analyst Marzell said last week in an X post, adding:
“October is often an ignition… Q4 $ Get ready for your ETH pump!”
Similarly, fellow analyst Midas predicted a very bullish Q4 based on past performance.
“ETH repeats the same 2020 pattern in the third quarter,” Midas said in an X post Monday, adding that such performance lasted a profit of over 100% in the fourth quarter.
This article does not include investment advice or recommendations. All investment and trading movements include risk and readers must do their own research when making decisions.