Ethereum (ETH) has registered a 10% price increase in the past week but remains below its historic peak of almost $5,000.
Three key indicators suggest it may reach and even surpass that milestone in the short term.
The Bullish Scenario
The popular X user Ali Martinez revealed that whales have acquired 800,000 ETH over the past week. The stash exceeds $3.6 billion, and this cohort of investors now holds 31.17 million tokens, representing 25% of the asset’s circulating supply.
Numerous users commenting on the post argued that a buying wave of this magnitude is rarely random and often signals that smart money is positioning for a potential rally ahead. Others speculated that the whales might “know something we don’t,” which could explain their recent efforts.
From an economic standpoint, accumulating such a vast amount of tokens reduces the available supply on the open market. When this limited supply meets steady or growing demand, it naturally sets the stage for a potential price surge.
The second factor is the increased interest in spot ETH ETFs. Those products have attracted over $1 billion in capital since the beginning of the month, signaling that institutional investors are steadily increasing their exposure to the asset.
Let’s now take a look at the amount of ETH stored on crypto exchanges. The figure recently plummeted to a nine-year low of around 16.1 million coins, indicating that investors are less likely to cash out and seek profits, and instead move their holdings to self-custody methods. This results in reduced selling pressure.
Something for the Bears
Contrary to the overall enthusiasm across the crypto community and the aforementioned factors that suggest ETH might be on the verge of a major pump, some elements are hinting at a possible pullback.
Earlier today (October 6), Ali Martinez claimed that the TD Sequential has flashed a sell signal at a key resistance of a little over $4,500. He believes a rejection at that point could be followed by a drop to $4,100 or even $3,780.
The post 3 Reasons Why Ethereum (ETH) Could Hit a New ATH This ‘Uptober’ appeared first on CryptoPotato.
Can ETH follow BTC’s footsteps and register a new historic peak this month? Crypto Bits, Crypto News, Ethereum (ETH) Price
This articles is written by : Nermeen Nabil Khear Abdelmalak
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