Analysts indicate that with the global M2 money supply reaching a record $95.58 trillion, Ethereum is undervalued and should exceed $8,000.
Bitcoin's declining dominance provides momentum for ETH bulls, with Bitcoin's market share dropping 8.5% since June 27.
Analysts state that as the global liquidity measured by broad money supply (M2) hit a new record high of $95.58 trillion on Friday, Ethereum (ETH) is "expected to trade above $8,000."
🔥 JUST IN: Global M2 money supply hits a new all-time high. pic.twitter.com/yrRQgEzIgS
The global liquidity supply or M2 aggregates the liquidity adjusted for dollars from major economies including the U.S., Eurozone, Japan, the UK, and Canada.
An increase in M2 indicates more money circulating in the economy, including bank accounts, checking deposits, and other liquid assets. This excess liquidity could increase capital flowing into risk assets like cryptocurrencies.
Ethereum appears to follow a similar M2 supply trajectory in 2025, defined by the Wyckoff accumulation method, despite a significant lag period.
"Compared to the growth in M2 supply, ETH should now be trading above $8,000," analyst Ted Pillows stated in a post on X on Thursday.
The analyst added:
World Liberty Financial co-founder Eric Trump responded by saying he "agrees."
Anonymous cryptocurrency analyst Wolf also shared a similar bullish perspective, predicting a conservative price target of $8,000 for ETH based on technical breakthroughs, with an optimistic target of $13,000 and above.
As promised, here’s the updated $ETH outlook. Two paths ahead: • Conservative target: $8K+ • Optimistic: $13K+ and beyond In both scenarios, expect a sharp 20–25% washout after ATHs, the final shakeout before liftoff. Q4 is when it ignites. This is the roadmap. pic.twitter.com/bI48uCQuhT
Multiple analysts predict that due to rising institutional demand through ETFs and Ethereum fund companies, the price of Ethereum will reach the range of $5,000 to $10,000 by the end of 2025.
With Bitcoin's share or "dominance" in the cryptocurrency market declining, the rise in Ethereum's price is not surprising.
Bitcoin's dominance or BTC.D fell to 60% on Monday, the lowest level since early February. It is currently down 8.5% since June 27.
During the same period, the price of ETH rose by 77%, reflecting a negative correlation with BTC.D.
Historically, significant declines in Bitcoin's dominance have triggered notable rebounds in Ethereum's price, as Ethereum is the largest altcoin by market capitalization.
In 2017 and 2021, the downward trend in BTC.D was accompanied by rebounds in ETH prices of 10,000% and 850%, respectively.
The price of ETH in terms of BTC, or the ETH/BTC ratio, is closely related to Bitcoin's dominance and has been rising, increasing by 40% this month, driven by strong inflows into spot Ethereum ETFs, surpassing Bitcoin ETFs for seven consecutive days.
🔥 BULLISH: The ETH/BTC ratio has surged ~40% in a month, returning to January levels amid Ethereum’s rally and strong ETF inflows. pic.twitter.com/ZU1iRbB6vy
Related: Ethereum (ETH) price aims for the $4,000 mark: Will this time be different?
This article does not contain investment advice or recommendations. Every investment and trading activity involves risks, and readers should conduct their own research when making decisions.
Original article: “Eric Trump ‘agrees’ Ethereum (ETH) price should follow M2 supply growth to break $8,000”
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