Ethereum (ETH) continues to strengthen its bullish trajectory, rallying above $4,700 as rising global liquidity and institutional demand increase optimism for a breakout towards $5,000.
The world’s second-largest crypto asset has an increasing correlation with global M2 money supply growth, suggesting that macroeconomic liquidity injections are directly impacting crypto market performance.
Ethereum reflects global liquidity growth
Recent analysis has highlighted Ethereum’s close relationship with global liquidity expansion, often measured by M2 money supply.
Capital is flowing into risky assets, including cryptocurrencies, as major central banks ease financial conditions and inject liquidity into markets. Ethereum in particular appears to be benefiting from this macro trend, reflecting increased investor confidence and institutional participation.
Currently trading around $4,688, ETH has risen nearly 3% in the past 24 hours, showing resilience amid widespread market volatility.
Analysts note that Ethereum’s ongoing accumulation phase between $4,300 and $4,700 suggests that a re-accumulation is set to precede a potential breakout. A decisive move above the $4,750-$4,800 resistance range could trigger a rally towards the $5,000-$5,500 zone.
ETH's price trends to the upside on the daily chart. Source: ETHUSD on Tradingview
Institutional trust and growing utility
Ethereum’s fundamentals have strengthened along with regulatory and institutional milestones. Grayscale recently secured approval for the first publicly traded spot staking ETP in the US, allowing institutional investors to access Ethereum staking rewards through a regulated product.
Meanwhile, investment firm Bitmine added $820 million worth of ETH to its treasury, which analysts see as a major vote of confidence in Ethereum’s long-term potential.
Nasdaq-listed Sharplink Gaming also announced $900 million in unrealized gains from an Ethereum-based financial strategy, confirming the token’s growing role as a productive asset rather than just speculation.
This wave of corporate and institutional participation strengthens Ethereum’s credibility as a yield-producing digital product, especially as decentralized finance (DeFi) and Layer 2 ecosystems continue to expand.
Technical Outlook: Looking beyond $5,000
Ethereum’s technical indicators support the bullish continuation, with the asset forming further lows and moving above the 50-day moving average of $4,550.
Analysts note that a clean break above $4,800 could pave the way for $5,000, and extended Fibonacci forecasts suggest a possible move towards $7,300-$8,000 if global liquidity continues to rise.
However, traders remain wary of mild overbought signals as the RSI shows a slight divergence. A short-term pullback towards $4,300-$4,050 is likely to act as a re-accumulation zone before the next up leg.
Overall, Ethereum’s alignment with increased liquidity coupled with record institutional interest positions it as one of the strongest candidates to break through the $5,000 milestone in Q4.
Tradingview ChatGPT, ETHUSD chart cover image
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