Ethereum For a $10,000 Scenario: Liquidity Effect

Recently, Ethereum (ETH), which has been attracting the attention of more and more investors every day, seems poised to be affected by the expansion of global liquidity. According to CryptoQuant's data, if the U.S. M2 money supply growth continues, the price of Ethereum could soar to $10,000. This situation could lead to a reevaluation of Ethereum's current value.

According to an analysis by XWIN Research Japan, a writer at CryptoQuant, the U.S. M2 money supply has reached a record level of $22.2 trillion. While Bitcoin (BTC) has already priced in this liquidity wave, Ethereum has only shown a 15% increase since 2022. This situation reveals the liquidity delay experienced by Ethereum. However, on-chain data indicates that this delay is starting to close.

The decrease of Ethereum reserves on exchanges to 16.1 million ETH marks a 25% decline since 2022. Additionally, the continuous negative trend in net flows means that Ethereum is being transferred to investors' own wallets or stake contracts. The return of the Coinbase Premium index to positive territory indicates an increase in buying interest from U.S. institutional investors.

According to historical data, during the early stages of easing monetary policies, Ethereum tends to lag behind Bitcoin. However, when Bitcoin dominance falls below 60%, investors generally tend to shift their capital into altcoins, particularly Ethereum. CryptoQuant analysts believe that 2025 could mark the beginning of a transition for investors from Bitcoin-centric markets to Ethereum and altcoin-centric phases.

Experts indicate that if global liquidity continues to expand and Ethereum outflows from exchanges persist, it will be inevitable for Ethereum to realign with M2 growth. In this scenario, the $10,000 target is not viewed as "optimistic," but rather as a natural outcome for investors.