Could M2 Growth Drive Ethereum to $10K?

• 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.

Tags Altcoin crypto Ethereum