Could M2 Growth Drive Ethereum to $10K?
Rising global liquidity and Ethereum outflows may pave the way for ETH to hit $10K in a new revaluation cycle.
- Ethereum may align with expanding M2 money supply.
- Continued exchange outflows signal long-term holding.
- A $10K ETH target is possible in the next revaluation phase.
As traditional financial systems pump more liquidity into the markets, Ethereum (ETH) could be setting up for a major move. One key metric in this narrative is M2, which refers to the broad money supply that includes cash, checking deposits, and easily convertible near-money assets.
M2 has been rising again globally, particularly as central banks shift away from tightening monetary policies. Historically, increases in M2 have aligned with bullish trends in risk-on assets like crypto. If this pattern continues, Ethereum may realign with M2’s expansion, potentially entering a fresh revaluation phase.
In this context, an ETH price target of $10,000 doesn’t seem far-fetched. It hinges on global liquidity continuing to grow and investors shifting more capital into decentralized, inflation-hedging assets.
Exchange Outflows Support Long-Term Bullish Case
Another supporting factor in Ethereum’s potential path to $10K is the ongoing structural outflow from crypto exchanges. When investors move ETH off exchanges, it usually indicates long-term holding rather than short-term selling.
These consistent outflows suggest rising confidence in Ethereum’s future and reduced sell pressure. When combined with increasing liquidity in the traditional financial system, it creates a bullish environment that favors higher valuations for ETH.
Revaluation Phase on the Horizon?
If both M2 expansion and ETH outflows persist, Ethereum may soon enter a new revaluation phase. This is when the market begins to reassess the value of an asset, driven by macroeconomic and structural factors—not just hype.
Ethereum’s strong fundamentals, ongoing network upgrades, and dominant position in DeFi and NFTs add to the narrative. In such a scenario, $10K ETH could become more than just a bullish dream—it might become the market’s new baseline.
