#Ethereum Why Ether is Poised for a Major Rally This October💪🌎

Recent trends in the cryptocurrency market suggest a bullish turn for Ethereum (ETH), driven by declining supply on exchanges, increased decentralized trading activity, and historical seasonal patterns. As ETH consistently climbs back above key levels, traders and investors are watching for potential bullish momentum heading into Q4, supported by onchain data and technical analysis points to a promising end-of-year rally.

⏰👉Ethereum supply on centralized exchanges hits nine-year lows, indicating increased institutional and retail accumulation.

⏰👉DeFi activity on Ethereum's decentralized exchanges (DEXs) increased by nearly 50% in a week, fueling positive market sentiment.

⏰👉Historical patterns and recent data point toward a potential ETH price surge in October, with some analysts forecasting over 100% gains in Q4.

⏰👉Ether (ETH) has rallied past the $4,000 mark on Monday, gaining 3.5% over the previous 24 hours.

This resurgence heightens hopes that ETH might continue its bullish trend into October, supported by several onchain signals, historic quarterly performance, and technical analysts' optimistic outlooks.

🌟ETH/USD hourly chart: Declining ETH supply on exchanges

As previously reported, overall Ether reserves on centralized exchanges have decreased to levels not seen since 2016, driven largely by institutional investors and long-term holders accumulating ETH for staking and other purposes.

✅CryptoQuant analyst CryptoMe explains that the reduction in ETH reserves can be attributed to three main factors:

✅Investors withdrawing ETH into self-custody wallets; Moving ETH to staking protocols or exchanges for yield;

🌟Transfers to newly generated wallets or cold storage.

Data further shows that Ethereum outflows from exchanges are at levels last seen during the late stages of the 2022 bear market, a period characterized by aggressive tightening of liquidity. The trend hints at increasing onchain demand and potential supply squeeze, which historically has preceded price rallies.
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