Why Ethereum (ETH) Could Be the Biggest Winner of the Global Liquidity Surge

Bitcoin reached a record high this week, but Ethereum is also seeing a major ￰0￱ fact, the altcoin may be quietly positioning itself for a significant rally as global liquidity continues to expand, according to new market ￰1￱ US M2 money supply, which is an important measure of liquidity, has climbed to a record $22.2 trillion after entering a renewed expansion phase over the past three years. Ethereum’s $10K Path? In its latest analysis, CryptoQuant explained that Bitcoin has already reflected this surge as it gained more than 130% since 2022 and has shown an unusually strong correlation of about 0.9 with M2. Ethereum, on the other hand, has risen only 15% in the same period, which is being described as a “liquidity lag.” Despite this, on-chain data indicates that the gap may be ￰2￱ reserves for ETH have dropped to roughly 16.1 million, down more than 25% since ￰3￱ is a sharp reduction in selling ￰4￱ negative netflows mean that investors are moving Ethereum into self-custody or staking contracts, which also points to tightening supply.

Meanwhile, the Coinbase Premium Index has flipped back into positive territory, amidst renewed interest from US ￰5￱ found that similar conditions in 2020 and 2021 preceded major Ethereum price ￰6￱ instances show that Ethereum tends to trail Bitcoin during the early stages of monetary easing cycles, but once BTC dominance falls below 60%, capital often rotates into altcoins, which drives gains in the ETH/BTC ￰7￱ trend now appears to be resurfacing, which hints that 2025 could represent a transformation from Bitcoin-led rallies to broader altcoin ￰8￱ such, Ethereum could realign with M2 growth, thereby pushing toward higher valuations if global liquidity expansion, as well as the structural decline in exchange reserves, ￰9￱ such a scenario, the $10,000 target for ETH would not represent speculative excess but rather a natural result of liquidity rotation within the crypto market.

“Quietly but steadily, the next liquidity wave may already be lifting Ethereum beneath the surface.” Lightning Rally If $5,200 Breaks The long-term view aligns with a perspective recently shared by Alphractal’s founder, Joao Wedson, who said that the immediate breakout of the crucial $5,200 level could trigger one of the fastest rallies in the asset’s ￰10￱ flows are already fueling confidence, as spot Ethereum ETFs purchased nearly $1.3 billion worth of ￰11￱ dominated the buying spree and accounted for over half the total with $691.7 million in purchases.