3 Reasons Why Ethereum (ETH) Could Hit a New ATH This ‘Uptober’

Can ETH follow BTC’s footsteps and register a new historic peak this month?

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.

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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.