Ethereum (ETH) has kicked off October with impressive momentum, gaining nearly 9% in the first three days and nearing the $4,500 mark by Friday. Analysts believe the cryptocurrency is on the verge of breaking out from its current re-accumulation phase.

For Ethereum’s bullish trend to continue, it must maintain support at $4,700.

Key Forecast for ETH

According to insights shared by Joao Wedson, founder and analyst at Alphractal, a critical level to monitor is $5,100. A move above this threshold could see Ethereum undergo a healthy correction back to $4,700 before making a larger ascent. If this support holds, a significant upward move is anticipated, with projections of prices reaching between $7,000 and $7,600 in the next stage.

Wedson emphasizes that a decisive breakout above $5,200 might trigger explosive growth, possibly launching Ethereum toward $7,000 within hours or days. He predicts we could witness one of the fastest rallies in Ethereum’s history.

Analyst Ted Pillows concurs, noting that the $4,500 threshold is currently acting as a resistance point. He states that successfully reclaiming this level could facilitate a swift rally into the $4,700-$4,750 range.

Recently, Ethereum has seen a considerable boost in institutional investment. According to data compiled by SoSoValue, spot ETH ETFs attracted inflows of $307.1 million, indicating revived investor confidence in the asset. BlackRock led these purchases with $177.1 million in ETH, while Fidelity and Bitwise followed with $60.71 million and $46.47 million, respectively.

Supply Crunch

Interestingly, Ethereum is experiencing a supply squeeze as withdrawals from exchanges significantly exceed inflows. Billions of dollars’ worth of ETH are leaving trading platforms, resulting in negative Exchange Flux Balance for the first time. This scarcity could act as a powerful catalyst for price appreciation, potentially igniting a historic rally for Ethereum.