- Ethereum reclaimed $4K as exchange supply dropped to its lowest levels since 2016, signaling accumulation.
- Weekly DEX trading volume surged 47%, with Uniswap and Maverick showing major growth.
- Historical data shows October is a bullish month for ETH, averaging nearly 5% gains and setting up Q4 rallies.
Ethereum just bounced back above $4,000, climbing as high as $4,200 heading into the weekly open. Traders are starting to whisper about a possible “ETH pump” in October, and the evidence looks pretty convincing. Between shrinking supply on exchanges, surging decentralized exchange volumes, and a seasonal bullish trend, ETH could be gearing up for a strong recovery.
ETH Supply on Exchanges Hits Historic Lows
Ethereum supply on centralized exchanges has fallen to levels not seen since 2016. Analysts say it’s a sign of accumulation, as investors pull coins into self-custody, staking contracts, and fresh wallets.
According to CryptoQuant’s CryptoMe, this pattern mirrors what happened during late 2022, right before ETH rallied out of the bear market. As he put it: “Falling reserves prepare the ground for that rally.” When demand hits, supply crunches can fuel powerful moves upward.
Ethereum DEX Volumes Jump Nearly 50%
On-chain sentiment is also flashing green. Ethereum’s decentralized exchange (DEX) volume surged 47% in a single week, hitting $33.9 billion. That’s a big jump from $22.9 billion the week before.
Layer-2 networks like Base, Arbitrum, and Polygon also saw gains, though nowhere near ETH’s scale. Major protocols followed suit—Maverick Protocol rose 30% while Uniswap volumes climbed 26%. Historically, big spikes in DEX activity line up with higher ETH prices, as demand for liquidity and trading drives more token usage.
Historical October Trends Favor ETH Bulls
September wasn’t kind—ETH slipped about 6%, lining up with its usual seasonal weakness. But October tells a different story. Data from CoinGlass shows Ethereum has averaged 4.77% gains in October, which would push ETH closer to $4,300 if history repeats.
Crypto analysts like Marzell and Midas are pointing to even bigger potential. Marzell called October the “ignition” for Ethereum’s Q4 run, while Midas compared the current setup to Q3 2020—a pattern that ended with ETH doubling in the following quarter.
