Ethereum (ETH) briefly surged above $4,400 on Thursday, following a 3% increase in value over the past 24 hours. Despite significant volatility in the market, September 2025 concluded positively.

With market sentiment cautiously optimistic as October begins, Ethereum is now positioned to potentially witness a substantial bullish breakout.

Alert: ETH Supply Crunch

For the first time in history, Ethereum (ETH) is exiting exchanges at a pace that far exceeds their ability to maintain it. This has resulted in an aggressive supply squeeze. Recent data shared by Alphractal indicates that billions of dollars’ worth of ETH have departed from trading platforms, whether assessed through netflow or USD valuation.

The Exchange Flux Balance has flipped negative for the first time in its existence. This indicator tracks cumulative netflow.

Traditionally, elevated metrics signify that exchanges were hoarding ETH due to increased inflows. However, the current negative reading implies that they can no longer match the volume of withdrawals. This suggests a surge in demand from both institutional and retail investors, reflecting the highest recorded interest in Ethereum from market makers.

The diminishing supply available on exchanges could set the stage for a significant price rally. If this trend continues, ETH could experience a historic price surge driven by scarcity, heightening buying pressure throughout the crypto market.

Predictions of a Parabolic Run

As Ethereum regained a vital support level at $4,250 and exceeded it, critical milestones now lie at $4,500 and $4,750 before another potential all-time peak. Conversely, a drop below $4,250 could push ETH towards $4,000, as noted by market expert Ted Pillows.

Crypto analyst Michaël van de Poppe believes Ethereum is poised for strong performance in forthcoming weeks. He anticipates an initial rebound for Bitcoin, followed by a slight correction, while ETH could gain momentum, potentially initiating a broader rally across the crypto ecosystem, especially as the BTC pair stabilizes.

Another researcher operating under the pseudonym ‘EtherNasyonaL’ observed that Ethereum appears set for a major upward movement, as the cryptocurrency displays patterns analogous to those seen in previous market cycles. Traditionally, ETH has followed a three-phase trajectory: breaking past key resistance, undergoing a re-test, and subsequently entering a parabolic rise. Presently, the market seems to be in its third phase, having tested the same critical horizontal support level noted in earlier cycles. Historically, such instances preceded a rapid, parabolic price increase.