Technical analysis by lixing_gan about Symbol ETH: Buy recommendation (10/3/2025)

Ethereum entered Oct above 4,300 USD, clawing back from a volatile Sep. On-chain data spotlights a historic supply squeeze: exchange balances have dropped to just 14.7 mln ETH, the lowest since 2016, as both institutions and retail buyers accelerate withdrawals. Fresh ETF inflows and a surge in long-term holding amplify this effect, limiting available supply and supporting higher prices. Meanwhile, anticipated network upgrades and renewed growth in decentralized application activity present notable upside catalysts this month. Meanwhile, additional seasonal "Uptober" optimism may further boost sentiment. ETHUSD rebounded above the ascending channel's lower bound and support at 3880. If the uptrend persists, the price could gain upward momentum toward the 5000 psychological resistance, which aligns with the Fibonacci confluence levels. Extending the bullish momentum may prompt further upside toward the 127.2% Fibonacci Retracement and the channel's upper bound at 6000. Conversely, if ETHUSD breaks below the channel's lower bound, the price could extend its decline to the following support at 3400. By Li Xing Gan, Financial Markets Strategist Consultant to Exness