The Global M2 Money Supply has experienced significant growth over the past year, reaching unprecedented heights. Analysts have closely monitored this trend, as they believe it has implications for cryptocurrency prices, particularly Bitcoin, which recently surged to $124,400 in response to the expanding money supply. Now, the same chart is being applied to Ethereum, with predictions suggesting that the altcoin could soon reach five-figure valuations.
Crypto and market analyst Ted Pillows is utilizing the Global M2 Money Supply chart to forecast the future performance of Ethereum. In a recent post, he overlaid the Ethereum price chart onto the money supply data. The analysis indicates that while Ethereum has not yet caught up with the rising money supply, its current position suggests an impending surge. Although a dip below the $4,000 threshold is possible, this scenario could ultimately benefit Ethereum’s trajectory, fueled by the liquidity found at that level. If this liquidity is absorbed, it may serve as a catalyst for a sharp rally.
Pillows forecasts that, in line with the Global M2 trend, Ethereum could rise by over 300%, potentially achieving a price range between $18,000 and $20,000 by 2026. Even under more conservative estimates, he suggests Ethereum could trade at around $10,000, indicating a strong long-term bullish outlook for the asset.
Pillows isn’t alone in his optimistic predictions. Another analyst, known as Titan of Crypto, has previously stated that Ethereum might reach the $10,000 mark this year. Titan has identified a Bull Pennant formation on the chart, which, if validated by a breakout, could propel Ethereum to that ambitious target.
At the moment, however, Ethereum faces challenges around the $4,000 level due to emerging liquidity. Analyst Donald Dean warns that if Ethereum loses support at $4,200, the altcoin’s next crucial support level will likely hover around $4,070. Yet, if Ethereum can maintain this support, it could act as a springboard for growth. Dean anticipates that should the price stabilize at $4,070, Ethereum might undergo a 50% retracement, ultimately aiming for a price target of $5,766 as the bullish momentum builds.
