Key takeaways:
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Analysts say Ether is undervalued and should be above $8,000, as global M2 money supply hits a record $95.58 trillion.
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A falling Bitcoin dominance adds fuel for ETH bulls, with Bitcoin’s market share dropping 8.5% since June 27.
Analysts say Ether (ETH) is undervalued and “should be trading above $8,000” as global liquidity, measured by broad money supply (M2), hit a new record high of $95.58 trillion on Friday.
ETH price following M2 breakout
Global liquidity supply, or M2, aggregates US dollar-adjusted liquidity from major economies including the US, eurozone, Japan, the UK and Canada.
A rising M2 implies that more money is circulating in the economy, including in bank accounts, checking deposits and other liquid assets. Such surplus liquidity can increase capital inflow into riskier assets like crypto.
Related: XRP vs ETH: Which token is quietly outperforming in whale-fueled rallies?
Ether appears to be following a similar M2 supply trajectory, defined by the Wyckoff accumulation method, in 2025, albeit with a significant lag period.
“Comparing with M2 supply growth, ETH should be trading above $8,000 by now,” said analyst TedPillows in an X post on Thursday.
The analyst added:
“This shows how undervalued ETH is right now, and is probably one of the best trades out here.”
World Liberty Financial co-founder Eric Trump responded to this, saying, “Agreed”.
A similar bullish outlook was shared by pseudonymous crypto analyst Wolf, who projects a conservative ETH price target of $8,000 and an optimistic target of $13,000 and above, based on a technical breakout.
“In both scenarios, expect a sharp 20–25% washout after ATHs, the final shakeout before liftoff.”
As promised, here’s the updated $ETH outlook. Two paths ahead:
• Conservative target: $8K+
• Optimistic: $13K+ and beyond
In both scenarios, expect a sharp 20–25% washout after ATHs, the final shakeout before liftoff.
Q4 is when it ignites.
This is the roadmap. pic.twitter.com/bI48uCQuhT— Wolf 🐺 (@IamCryptoWolf) July 25, 2025
Multiple analysts have predicted the Ether price to reach the $5,000-$10,000 range by the end of 2025, owing to rising institutional demand via ETFs and Ethereum treasury corporations.
Ether price gains as Bitcoin dominance falls
The growing Ether price unsurprisingly appears as Bitcoin’s share of the cryptocurrency market, or “dominance,” declines.
Bitcoin’s dominance, or BTC.D, fell to 60% on Monday, levels last seen in early February. It is currently 8.5% down since June 27.
ETH price gained 77% in the same period, reflecting a negative correlation with BTC.D.
Historically, major drops in Bitcoin dominance have triggered significant rallies in Ether price, as Ethereum is the biggest altcoin by market cap.
In 2017 and 2021, BTC.D downtrends accompanied 10,000% and 850% rallies in ETH price, respectively.
The price of ETH, measured in BTC, or the ETH/BTC ratio, which closely correlates with Bitcoin dominance, has also been increasing, up 40% over the month, fueled by stronger spot Ethereum ETF inflows outpacing Bitcoin ETFs for seven straight days.
🔥 BULLISH: The ETH/BTC ratio has surged ~40% in a month, returning to January levels amid Ethereum’s rally and strong ETF inflows. pic.twitter.com/ZU1iRbB6vy
— Cointelegraph (@Cointelegraph) July 23, 2025
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
