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Ether’s bullish momentum intensifies as Bitcoin dominance dips below 60%, marking its lowest point since February and signaling a potential shift in market dynamics.
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Analysts highlight Ether’s undervaluation relative to the soaring global M2 money supply, suggesting significant upside potential as liquidity fuels crypto investments.
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According to COINOTAG sources, technical indicators and ETF inflows support a strong ETH price rally, with targets ranging from $8,000 to $13,000 in the near term.
Ether gains strength as Bitcoin dominance falls below 60%, with analysts forecasting ETH prices above $8,000 amid record global liquidity and rising institutional demand.
Ether Price Set to Surge Amid Record Global M2 Money Supply
The recent spike in global liquidity, measured by the M2 money supply, has reached an unprecedented $95.58 trillion, creating fertile ground for risk assets like cryptocurrencies to thrive. This broad money supply metric encompasses cash, checking deposits, and easily liquidated assets across major economies such as the US, Eurozone, Japan, the UK, and Canada.
As liquidity expands, capital tends to flow into higher-yielding assets, and Ether has emerged as a prime beneficiary. Analysts employing the Wyckoff accumulation framework note that ETH’s price trajectory is currently lagging behind the M2 growth curve, indicating a substantial undervaluation.
Crypto analyst TedPillows emphasized this disparity, stating that Ether “should be trading above $8,000 by now,” highlighting the asset’s potential for significant appreciation as market conditions align with liquidity trends.
Technical Breakouts and Institutional Interest Bolster ETH Outlook
Further reinforcing the bullish case, technical analyst Wolf projects two potential price pathways for Ether: a conservative target exceeding $8,000 and an optimistic scenario surpassing $13,000. Both scenarios anticipate a short-term 20–25% correction following all-time highs, a typical market shakeout before sustained upward momentum.
Institutional adoption is also accelerating, with Ethereum-focused ETFs and treasury allocations driving demand. This influx of institutional capital is expected to underpin Ether’s price stability and growth through 2025, positioning it as a compelling investment within the crypto ecosystem.
Declining Bitcoin Dominance Fuels Ether’s Market Share Expansion
Bitcoin’s market dominance has fallen to 60%, a level not seen since early February, reflecting an 8.5% decrease since late June. This decline correlates with Ether’s impressive 77% price gain over the same period, underscoring a shifting preference among investors toward Ethereum and altcoins.
Historically, reductions in Bitcoin dominance have preceded substantial rallies in Ether’s price. Notably, during the 2017 and 2021 cycles, BTC dominance drops coincided with explosive ETH gains of 10,000% and 850%, respectively.
The ETH/BTC ratio, a key indicator of Ethereum’s strength relative to Bitcoin, has surged approximately 40% in the past month. This increase is supported by stronger inflows into spot Ethereum ETFs compared to Bitcoin ETFs for seven consecutive days, signaling growing institutional confidence in Ethereum’s growth prospects.
Market Implications and Future Outlook
The interplay between expanding global liquidity, declining Bitcoin dominance, and rising institutional interest creates a robust foundation for Ether’s continued appreciation. Investors should monitor these macroeconomic and technical factors closely, as they collectively suggest a favorable environment for ETH price advances.
While short-term volatility remains a possibility, the broader trend points toward Ether consolidating its position as a leading digital asset, supported by both fundamental and technical drivers.
Conclusion
Ether’s current undervaluation amid record global liquidity and a decreasing Bitcoin dominance highlights a pivotal moment for the cryptocurrency market. With strong technical signals and growing institutional participation, ETH is poised for significant gains, potentially surpassing $8,000 in the near term. Market participants are advised to stay informed and consider these dynamics when evaluating their crypto portfolios.
