Ethereum's impressive recent surge has ignited a fresh wave of bullish forecasts, with analysts contemplating the possibility of the cryptocurrency reaching an ambitious $10,000 valuation. A significant 13% increase over the past week has propelled Ethereum close to its all-time high, drawing considerable attention to its future trajectory.
Technical Breakthroughs Pave the Way
Market analyst Mags recently highlighted a pivotal moment for Ethereum (ETH): after 1,146 days of price consolidation, the digital asset finally breached the critical $4,000 level. This marks a successful fourth attempt after three previous setbacks, with ETH now consolidating above this key psychological and technical barrier for several months. Despite a brief dip to $3,800, robust bullish sentiment quickly fueled a V-shaped recovery. Technical analysis suggests that this pattern is highly favorable, with a projected next upward target of $7,331, aligning precisely with the 1.618 Fibonacci extension level.
Macroeconomic Tailwinds and On-Chain Momentum
Beyond technical indicators, macroeconomic conditions are also significantly bolstering Ethereum's potential for further gains. Analysts at CryptoQuant point to a renewed expansion in the US M2 money supply, which has hit a record high of approximately $22.2 trillion. While Bitcoin (BTC) initially led this trend with over 130% growth since 2022, Ethereum has experienced a "liquidity lag," rising by only about 15% in the same period. However, on-chain data compiled by CryptoQuant indicates this gap may be closing. Notably, Ethereum’s exchange reserves have decreased by more than 25% since 2022 to roughly 16.1 million ETH, suggesting a structural reduction in selling pressure as investors withdraw ETH for self-custody. A positive shift in the Coinbase Premium Index further signals burgeoning interest from US institutional investors.
Shifting Market Dynamics and the $10,000 Horizon
Historically, Ethereum tends to follow Bitcoin during the early phases of monetary easing cycles. However, as Bitcoin's market dominance recedes below 60%, capital typically rotates into the broader altcoin market, boosting the ETH/BTC ratio. CryptoQuant analysts observe this pattern re-emerging, anticipating a shift from a Bitcoin-centric market to one increasingly driven by Ethereum and other altcoins later this year. If global liquidity continues to expand and the trend of ETH outflows from exchanges persists, Ethereum's price could align more closely with M2 growth, ushering in a new revaluation phase. In such a scenario, the prospect of ETH reaching the $10,000 milestone becomes "increasingly possible," according to these experts.
