Ethereum Price Could Surge to $10,000 Amid Liquidity Expansion
Ethereum Price Surge: Recently, Ethereum has shown significant momentum with a 13% increase over the past week, bringing it close to its all-time high. Analysts are predicting further gains.
Key Developments
- Ethereum surpassed the $4,000 level after 1,146 days of consolidation.
- A temporary dip to $3,800 was followed by a recovery above $4,000, indicating bullish sentiment.
- Analyst Mags forecasts a potential target price of $7,331 for ETH, aligning with the 1.618 Fibonacci extension level.
Macroeconomic Influence
- The US M2 money supply's expansion phase is influencing Ethereum's market dynamics.
- While Bitcoin has surged by over 130%, Ethereum has risen around 15%, attributed to "liquidity lag."
- CryptoQuant data shows decreased exchange reserves, suggesting reduced selling pressure and increased self-custody.
Market Rotation
- As Bitcoin's dominance falls below 60%, investment may shift towards Ethereum and other altcoins.
- If global liquidity continues expanding, Ethereum could align with M2 growth, potentially reaching $10,000.
Overall, Ethereum's current trajectory and macroeconomic factors indicate a promising outlook, with analysts suggesting it may reach new highs if trends persist.