Ethereum (ETH) continues to strengthen its upward trajectory, surpassing $4,700, as expanding global liquidity and institutional demand fuel optimism for a breakout 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 influencing crypto market performance.
Ethereum reflects global liquidity growth
Recent analyzes highlight the close relationship between Ethereum and global liquidity expansion, often measured by M2 money supply.
As major central banks ease financial conditions and inject liquidity into markets, risky assets, including cryptocurrencies, have seen inflows. Ethereum, in particular, appears to benefit from this macro trend, reflecting an increase in investor confidence and institutional participation.
Currently trading around $4,688, ETH has gained nearly 3% over the past 24 hours, showing resilience amid broader market volatility.
Analysts point out that Ethereum’s ongoing accumulation phase between $4,300 and $4,700 suggests a re-accumulation pattern 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 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 alongside regulatory and institutional milestones. Grayscale recently gained approval for the first US-listed spot staking ETPs, allowing institutional investors to access Ethereum staking rewards through regulated products.
Meanwhile, investment firm BitMine added $820 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 gains from its Ethereum-based financial strategy, confirming the token’s growing role as a productive asset rather than just speculation.
This wave of participation from companies and institutions reinforces Ethereum’s credibility as a yield-generating digital product, especially as decentralized finance (DeFi) and layer 2 ecosystems continue to expand.
Technical Outlook: Eyes on $5,000 and Beyond
Ethereum technical indicators support a bullish continuation, with the asset forming higher lows and holding above the 50-day moving average at $4,550.
Analysts note that a sharp break above $4,800 could pave the way to $5,000, with extended Fibonacci projections hinting at a possible move towards $7,300 to $8,000 if global liquidity continues to increase.
However, traders remain cautious of slight overbought signals as the RSI shows slight divergence. Short-term pullbacks towards $4,300 to $4,050 would likely serve as reaccumulation zones before the next leg of upside.
Overall, Ethereum’s alignment with liquidity expansion, combined with record institutional interest, positions it as one of the top contenders in Q4 to breach the $5,000 mark.
Cover image of ChatGPT, ETHUSD chart on Tradingview
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