The financial world watches closely as Ethereum shows remarkable strength. Even prominent figures like Eric Trump now publicly acknowledges its huge potential, agreeing that Ethereum should trade above $8,000. This bold statement arrives as the global M2 money supply, a key measure of available capital, reaches an unprecedented $95.58 trillion. This substantial increase in global liquidity often drives capital towards dynamic assets like cryptocurrencies.
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Analysts Proclaim Ethereum’s Explosive Potential
Market analysts consistently state that Ethereum is hugely undervalued. Their reasoning centers on the vast amount of money circulating globally. The M2 supply includes cash and bank deposits across major economies. When this liquidity expands, and traditional investments offer lower returns, a portion of this capital naturally seeks higher-growth opportunities within the digital asset space.
Analyst TedPillows highlighted this on X, asserting, “Comparing with M2 supply growth, ETH should be trading above $8,000 by now.” He believes this demonstrates Ether’s current market position, suggesting it represents a compelling trade. Eric Trump’s concise “Agreed” further reinforces this view, signaling confidence from a figure rooted in traditional finance.
Bitcoin Dominance Shifts
Beyond the global increase in liquidity, a notable shift within the crypto market actively supports Ether’s rise: Bitcoin’s market dominance is declining.
Since June 27, Bitcoin’s share of the total crypto market has fallen by 8.5%, now resting below 60%, a level not observed since early February. Historically, a decrease in Bitcoin dominance (BTC.D) often triggers significant rallies across altcoins. As the largest altcoin by market capitalization, Ether typically leads these movements. Past instances in 2017 and 2021 saw substantial BTC.D drops precede ETH rallies of 10,000% and 850%, respectively.
Ethereum Outperforms Bitcoin across Key Indicators
The ETH/BTC ratio, which measures Ethereum’s performance against Bitcoin, shows a strong upward trend, increasing by 40% over the past month. This indicates Ether’s growing strength relative to Bitcoin.
Further solidifying this momentum, spot Ethereum ETFs have recorded stronger inflows, consistently surpassing Bitcoin ETFs for seven consecutive days. This trend underscores increasing institutional interest and direct investment flowing into Ether.
Experts Project Huge Price Targets
While a conservative target of $8,000 for ETH is now a prominent discussion, some analysts, including “Wolf,” project an optimistic target of $13,000 and beyond, based on strong technical indicators.
Many experts predict Ethereum’s price could reach the $5,000-$10,000 range by the close of 2025. This forecast is driven by accelerating institutional demand, particularly through ETFs, and the increasing adoption of Ethereum by corporations for their treasuries.
Investors Should Anticipate Market Volatility
While the outlook for Ethereum remains strong, the crypto market is inherently volatile. Some analysts anticipate a potential 20-25% “washout” after new all-time highs. This typical market correction often precedes a more sustained upward movement.
However, the overarching narrative for Ether remains robust. At the time of writing, ETH is sitting at $3,685.93.
