Ethereum (ETH) continues to strengthen its bullish trajectory, rising above $4,700 as it expands global liquidity for a breakout to $5,000 and optimism in fuel demand for facilities.
The world’s second largest crypto assets are increasingly correlated with the growth of global M2 money supply, suggesting that macroeconomic liquidity injections have a direct impact on crypto market performance.
Ethereum reflects global liquidity growth
Recent analyses highlight the close relationship with global liquidity expansion, often measured in M2 money supply.
As major central banks ease their financial position and inject liquidity into the market, risky assets, including cryptocurrencies, have seen an influx of influx of risk assets, including cryptocurrencies. Ethereum in particular appears to benefit from this macro trend, reflecting an increase in investor trust and institutional participation.
Currently trading around $4,688, ETH has earned nearly 3% in the last 24 hours, showing resilience amid wider market volatility.
Analysts point out that Ethereum’s ongoing accumulation stage of $4,300 to $4,700 suggests a re-accumulation setup ahead of a possible breakout. A critical move above the $4,750-$4,800 resistance range could trigger rally towards the $5,000-$5,500 zone.
ETH's price trends to the upside on the daily chart. Source: ETHUSD on Tradingview
Expanding institutional confidence and utility
Ethereum’s fundamentals are strengthened along with regulatory and institutional milestones. Grayscale recently secured approval for the first US-listed spot staking ETP, allowing institutional investors to access Ethereum staking rewards through regulated products.
Meanwhile, investment company Bitmine has added $8220 million worth of ETH to the Treasury. The analyst considers it a key vote of trust for Ethereum’s long-term potential.
Registered with NASDAQ, Sharplink Gaming announced $900 million in unrealized profits from its Ethereum-based financial strategy, confirming the growing role of tokens as productive assets rather than just speculation.
This wave of participation in companies and institutions will enhance the reliability of Ethereum’s yields as a digital product, particularly as the Decentralized Financial (DEFI) and the Layer 2 ecosystem continues to expand.
Technical Outlook: Over $5,000 Eyes
Ethereum’s technical indicators support bullish continuity, with assets forming a higher low, surpassing the 50-day moving average of $4,550.
Analysts are noting that a clean breakout of over $4,800 could pave the way for $5,000. The extended Fibonacci forecast suggests a move from $7,300 to $8,000 if global liquidity continues to rise.
However, the RSI shows slight differences, so traders are paying attention to mild acquisition signals. A short-term pullback to $4,300-4,050 may act as a re-accumulation zone before the next leg is high.
Overall, Ethereum’s consistency with liquidity expansion and record institutional benefits position it as one of Q4’s most powerful competitors, breaking $5,000.
TradingView Ethusd Chart, ChatGpt cover image
