Ethereum (ETH) continues to strengthen its bullish trajectory, rising above $4,700 as global liquidity expansion and institutional demand fuel optimism about a break above $5,000.
The world's second-largest cryptocurrency asset is increasingly correlated with growth in global M2 money supply, suggesting that macroeconomic liquidity injections are having a direct impact on cryptocurrency market performance.
Ethereum reflects global liquidity growth.
Recent analysis highlights Ethereum's close relationship with global liquidity expansion, often measured by M2 money supply.
As major central banks ease financial conditions and inject liquidity into the market, risky assets such as cryptocurrency are flowing in. Ethereum in particular appears to be benefiting from this macro trend, reflecting increased investor confidence and institutional participation.
Currently trading around $4,688, ETH is up nearly 3% in the past 24 hours, showing its resilience amid widespread market volatility.
Analysts note that Ethereum's ongoing accumulation phase between $4,300 and $4,700 suggests a reaccumulation setup ahead of a possible breakout. A decisive move above the $4,750-$4,800 resistance range could trigger a rally towards the $5,000-$5,500 area.
ETH's price trends to the upside on the daily chart. Source: ETHUSD on Tradingview
Expanding institutional trust and utility
Ethereum’s fundamentals have been strengthened along with regulatory and institutional milestones. Grayscale recently secured approval for the first U.S.-listed spot staking ETP, allowing institutional investors to access Ethereum’s staking rewards through a regulated product.
Meanwhile, investment firm BitMine added $820 million worth of ETH to its treasury, a move seen by analysts as a major vote of confidence in Ethereum's long-term potential.
Nasdaq-listed SharpLink Gaming also announced $900 million in unrealized profits from its Ethereum-based financial strategy, confirming the token's growing role as a productive asset rather than mere speculation.
This wave of corporate and institutional participation strengthens Ethereum’s credibility as a profitable digital commodity, especially as the decentralized finance (DeFi) and layer 2 ecosystems continue to expand.
Technical outlook: Watch above $5,000
Ethereum’s technical indicators support the continuation of the bullish trend, with the asset making higher lows and holding above its 50-day moving average of $4,550.
Analysts note that a break above $4,800 could pave the way for $5,000, while the extended Fibonacci outlook suggests an upside towards $7,300-$8,000 if global liquidity continues to increase.
However, traders remain wary of mild overbought signals as the RSI shows some divergence. A short-term decline towards $4,300-$4,050 is likely to act as a re-accumulation zone before the next leg of the move higher.
Overall, Ethereum's correction in expanding liquidity, combined with record institutional interest, positions it as one of the strongest contenders for the fourth quarter to break $5,000.
ChatGPT, ETHUSD chart cover image by Tradingview
editing process for focuses on providing thoroughly researched, accurate, and unbiased content. We adhere to strict sourcing standards, and each page is diligently reviewed by our team of top technology experts and seasoned editors. This process ensures the integrity, relevance, and value of the content for readers.
