Ethereum and Its Correlation with Global M2 Supply
Recent Ethereum price charts show that the altcoin has been closely tracking the growth of global liquidity, represented by the M2 money supply. Crypto analyst TedPillows commented: “Based on M2 growth, ETH should be trading above $8,000. This highlights how undervalued Ethereum is right now.” Eric Trump responded with agreement.
After reaching a local high of $3,900 earlier this week, ETH is experiencing some price correction due to a major unstaking event involving over 640,000 ETH. However, the $3,600 level is currently acting as a strong support zone.
Despite short-term volatility, the demand for Ethereum remains solid, especially from institutional investors. Inflows into ETH ETFs, treasury activity, and ongoing infrastructure development are reinforcing long-term bullish sentiment. Wall Street veteran and Galaxy Digital CEO Mike Novogratz recently predicted that ETH will outperform Bitcoin for the rest of 2025.
U.S. M2 Money Supply Surges in June
According to data from the Federal Reserve, the U.S. M2 money supply rose by 4.5% year-over-year in June, hitting a record $22.02 trillion. This marks the 20th consecutive month of growth and the fastest annual increase since July 2022. Historically, such liquidity boosts have fueled major rallies in the crypto market.
If Ethereum continues to follow this liquidity trend, experts like Arthur Hayes believe it could reach $10,000 by the end of 2025.
On July 24, spot Ethereum ETFs recorded over $214 million in net inflows, marking the 15th straight day of positive inflows. Fidelity Ether ETF (FETH) led the way with $203 million on Thursday alone. Meanwhile, BlackRock’s Ethereum ETF has surpassed $10 billion in cumulative inflows — making it the third-fastest ETF to reach this milestone, trailing only IBIT and FBTC.
