TLDR

Global M2 money supply reached a record $95.58 trillion, indicating increased liquidity in major economies.
Analysts believe Ethereum is significantly undervalued based on its historical correlation with global liquidity trends.
Due to technical breakouts and strong institutional demand, Ethereum is projected to reach $8,000 or higher by late 2025.
Bitcoin dominance dropped to 60 percent as Ethereum gained 77 percent since June 27, reflecting a market shift.
Ethereum ETF inflows have surpassed Bitcoin ETFs for seven consecutive days, signaling growing investor interest.

Ethereum continues to gain attention as market analysts forecast a significant upward price movement aligned with global liquidity growth. The global M2 money supply recently reached a record $95.58 trillion, supporting capital inflows into high-risk assets. Ethereum, currently trading at $3,640, remains undervalued compared to projections based on liquidity trends.

Global M2 Hits Record, Boosting Crypto Capital Inflows

The M2 supply includes checking accounts, deposits, and other liquid money forms across the US, the eurozone, Japan, UK, and Canada. This surge in M2 indicates more money in circulation, which can increase demand for alternative assets like cryptocurrencies. As liquidity grows, Ethereum becomes a prime candidate for institutional and retail inflows.

Analysts have mapped Ethereum’s current cycle to historical patterns using the Wyckoff accumulation method, showing a lag behind M2 expansion. They note that if Ethereum had tracked M2 growth directly, its price would have already exceeded $8,000. The lag suggests the market has yet to price in the macro liquidity environment fully.

Investor sentiment continues to strengthen as market signals align with past trends seen in crypto bull cycles. Previous M2 expansions have historically preceded price rallies in leading cryptocurrencies. This environment, combined with Ethereum’s improving fundamentals, creates a supportive backdrop for a potential breakout.

Ethereum Price Projections See Major Upside Potential

Technical analysts forecast the Ethereum price reaching conservative levels of $8,000, with some estimating values above $13,000 by late 2025. Price models cite rising ETF inflows and Ethereum’s improving ETH/BTC ratio as key bullish factors. The ETH/BTC pair has grown 40% over the last month.

Ethereum’s rally aligns with declining Bitcoin dominance, which fell to 60%, marking an 8.5% drop since June 27. Historically, falling Bitcoin dominance has triggered sharp Ethereum price increases, seen during major altcoin rallies in 2017 and 2021. Ethereum outperformed Bitcoin by gaining 77% in that same period.

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

— Wolf 🐺 (@IamCryptoWolf) July 25, 2025

Additionally, ETF data shows stronger inflows into spot Ethereum products over seven consecutive days, suggesting rising institutional demand. Ethereum continues to attract capital as investors diversify away from Bitcoin. This sustained demand reinforces the bullish price trajectory projected by multiple market participants.

Bitcoin Dominance Drops, Supports Ethereum Momentum

As Bitcoin’s market share weakens, capital rotates into Ethereum and other altcoins, strengthening their position in the market. Ethereum benefits from its ecosystem, upcoming upgrades, and ETF momentum, boosting investor confidence. The growing ETH/BTC ratio confirms Ethereum’s increasing market strength relative to Bitcoin.

Bitcoin dominance trends have historically reversed after Ethereum-led altcoin rallies, reflecting macro-level rotation between crypto assets. With global liquidity rising, Ethereum remains positioned to capitalize on the broader risk-on sentiment. This dynamic supports projections of higher Ethereum valuations through 2025.

The post Ethereum Forecasted to Hit $8K Amid Record Global M2 Expansion appeared first on CoinCentral.

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Filed under: News - @ July 25, 2025 4:33 pm