Ethereum (ETH) started October strong, gaining almost 9% within the first three days and reaching close to $4,500 by Friday. The crypto asset’s current setup appears to be on the verge of breaking out from a re-accumulation phase. Its bullish path hinges on holding the $4,700 support level.
### Bold ETH Forecast
According to analysis shared by Alphractals founder and analyst Joao Wedson, an important level to watch is $5,100. If Ethereum pushes past this point, a correction back toward $4,700 would actually be a healthy retest and could set the stage for a much larger move.
However, $4,700 must hold as support; a breakdown below this level could derail the bullish trajectory. The bigger picture remains highly optimistic, with Alphractal eyeing a target between $7,000 and $7,600 for the next leg up.
Wedson further argues that a clean break above $5,200 could act as a trigger, catapulting Ethereum toward $7,000 in just hours or a few days. The outlook predicts that the market could soon witness one of the fastest and most decisive rallies in Ethereum’s history.
### Resistance and Rally Signals
Analyst Ted Pillows echoed a similar sentiment, stating that $4,500 is currently acting as a resistance level. According to his analysis, a successful reclaim of this price point could trigger a swift rally toward the $4,700-$4,750 range.
### Institutional Inflows Boost Ethereum
Ethereum saw a significant boost recently in institutional flows. Data compiled by SoSoValue shows that spot ETH ETFs recorded an inflow of $307.1 million amidst renewed investor confidence.
BlackRock led the charge, purchasing $177.1 million worth of ETH—accounting for more than half of the day’s total inflow. Fidelity’s FETH captured $60.71 million, followed by Bitwise ETHW with $46.47 million. Grayscale’s ETH ETF also brought in over $12 million in inflows on the same day.
These allocations from some of the largest asset managers highlight growing institutional interest in Ethereum, especially amid the current market’s major rebound.
### Ethereum Faces a Supply Squeeze
Interestingly, Ethereum is also experiencing a supply squeeze as withdrawals from exchanges now outpace inflows. Data reveals billions of dollars worth of ETH leaving trading platforms, pushing the Exchange Flux Balance into negative territory for the first time.
Where exchanges once accumulated ETH, they now struggle to keep up with demand. With available supply shrinking sharply, this imbalance could create a potent catalyst for price appreciation. Scarcity on exchanges may bolster buying pressure and trigger a historic Ethereum rally.
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Stay tuned for more updates as Ethereum looks poised for potentially significant market movements in the coming days and weeks.
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