Ethereum (ETH) is strengthening its strength above $4,700 as global liquidity expands and institutional demand fuels optimism towards $5,000.
The world’s second-largest crypto asset is increasingly correlated with global M2 money supply growth, suggesting that macroeconomic liquidity injections are directly impacting crypto market performance.
Ethereum reflects global liquidity growth
Recent analysis highlights Ethereum’s close relationship with expanding global liquidity, often measured by M2 money supply.
Risk assets, including cryptocurrencies, have seen inflows 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 gained nearly 3% in the last 24 hours, showing its resilience amid wider market volatility.
Analysts noted that Ethereum’s ongoing accumulation phase suggests another accumulation setup ahead of a possible breakout between $4,300 and $4,700. A decisive move above the $4,750-$4,800 resistance range could initiate 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 Extended Utility
Ethereum’s foundation has been strengthened along with regulatory and institutional milestones. Grayscale recently secured approval for the first US-listed spot staking ETP, giving institutional investors access to Ethereum’s staking rewards through a regulated product.
Meanwhile, investment firm Bitmine added $880 million worth of ETH to its treasury, a move analysts see 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 growth role as a producing asset rather than mere speculation.
This wave of corporate and institutional participation strengthens Ethereum’s credibility as a yield-generating digital commodity, especially as the decentralized finance (DEFI) and layer-2 ecosystems continue to expand.
Tech Outlook: Eyes Above $5,000
Ethereum’s technical indicators support the bullish continuation, with the asset forming higher lows and holding its 50-day moving average at $4,550.
Analysts say a clean breakout above $4,800 could pave the way to $5,000, while the extended Fibonacci forecast could see a move to $7,300-$8,000 if global liquidity continues to increase.
However, as the RSI shows some divergence, traders pay close attention to mild overbuy signals. A short-term pullback towards $4,300 to $4,050 will likely act as a recoup zone before the next leg could be higher.
Overall, Ethereum’s coordination with liquidity expansion, combined with record institutional interest, makes it one of the strongest contenders for Q4 to $5,000.
Chatgpt by TradingView, image cover of Ethusd chart
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