- •Ethereum edges closer to $5,000 as liquidity fuels optimism.
- •Analysts predict Ethereum could hit $10,000 amid reduced exchange supply.
- •Investor confidence rises as staking and M2 expansion drive bullish momentum.
Ethereum is attracting renewed attention from investors as its price continues to climb toward the $5,000 mark. The asset has recorded an impressive 11.6% increase in the past week, reflecting growing optimism in the broader crypto market.
According to insights from CryptoQuant, Ethereum could extend its rally to $10,000 if the current global liquidity expansion persists. Analysts point to M2 money supply conditions as a crucial factor supporting the bullish setup. M2 represents the total amount of liquid money circulating in the economy, including cash, deposits, and savings.
Recent data shows that the U.S. M2 money supply has risen sharply to $22.2 trillion over the past three years. This surge has coincided with a 130% increase in Bitcoin’s value since 2022, signaling the strong link between liquidity and crypto performance. With Bitcoin now stable around the $124,000 range, analysts suggest that Ethereum could soon follow a similar path.
Moreover, Ethereum’s price growth has been relatively modest compared to Bitcoin’s gains, with only a 15% increase so far. CryptoQuant describes this as a “liquidity lag,” indicating that Ethereum’s rally may just be starting.
Could Expanding M2 Push ETH Toward $10K?
“If global liquidity continues to expand and the structural outflow from exchanges persists, Ethereum could realign with M2 growth and enter a new revaluation phase. In that scenario, $10K is far from unrealistic.” – By @xwinfinance
— CryptoQuant.com (@cryptoquant_com) October 6, 2025
Exchange Outflows and Staking Strengthen Bullish Setup
Recent market data shows a steady decline in Ethereum’s exchange reserves, now standing at about 16.1 million ETH. This reduction means fewer tokens are available for sale, which could ease selling pressure.
At the same time, investors are increasingly moving their holdings into staking and self-custody wallets. This shift signals long-term confidence among holders and reduces short-term market supply. Historically, such patterns have preceded strong bullish runs, especially when Bitcoin leads early in a market cycle.
Besides, institutional demand for Ethereum continues to grow, further fueling its long-term prospects. Analysts note that when capital rotates from Bitcoin into altcoins, Ethereum often benefits first.
Currently, Ethereum is trading around $4,587.43, marking a slight daily gain of 1.05%. The asset’s Relative Strength Index stands at 66.57, suggesting that it is nearing overbought territory. Trading volume has dropped by nearly 25% to $31.64 billion, showing cautious optimism among traders.
Overall, the combination of reduced supply, expanding liquidity, and sustained staking activity has created a favorable environment for Ethereum. If these conditions persist, analysts believe a move toward the $10,000 mark could become achievable in the ongoing market cycle.