Ethereum News Today: Ethereum Climbs to $3,900 as M2 Supply Rises, Accumulators Build Positions

Ethereum’s price trajectory has increasingly aligned with broader monetary supply trends as the M2 money supply continues to reach new all-time highs. This correlation has drawn the attention of analysts, who note that Ethereum (ETH) appears to be tracking M2 liquidity with precision. The M2 metric, a key indicator of a country's money supply, has been expanding, and this has historically coincided with significant price movements in the crypto market. As this trend persists, investors and analysts are watching closely to see if ETH can break above the $4,000 level, which many view as a critical psychological threshold [1].

ETH accumulators, particularly long-term investors and institutional players, are showing strong conviction in the altcoin’s potential. With each dip in the market, these investors are buying more ETH, effectively doubling down on their positions. This behavior is interpreted as a sign of strong confidence in Ethereum’s fundamentals and its ability to outperform in the current market cycle. The accumulation has been especially pronounced since the first quarter of 2025, following the Bitcoin halving event, which historically marks the beginning of a bullish phase for altcoins [1].

Analysts highlight that the recent ETH price action has been structured with remarkable consistency. After hitting a low of $1,700 in Q1 2025, the price steadily climbed to $2,700 by Q2, then surged further to $3,700 in Q3. In early Q3, it reached $3,800 and $3,900, and now, it is positioned to potentially break above $4,000. This gradual ascent has led to growing expectations that ETH will soon set a new all-time high, potentially reaching as high as $4,200 [1].

Notably, Ethereum has demonstrated greater resilience compared to Bitcoin during recent market corrections. While BTC dipped from $119,000 to $113,000 over two separate corrections, causing significant liquidations, ETH faced relatively smaller sell-offs. This suggests that traders are more willing to hold ETH through volatility, reinforcing the idea that smart money is actively accumulating the asset ahead of a potential breakout [1].

The market sentiment has been further boosted by a well-received analysis from Merlijn The Trader, a respected figure in the crypto space. He described how Ethereum is behaving like a “heat-seeking missile” as it tracks M2 liquidity, and how each bearish attempt has turned into a buying opportunity for accumulators. He emphasized that the current momentum is building toward a significant price move, and that those who fail to act now may miss the next major ETH rally [1].

As the price of ETH inches closer to $4,000, the focus remains on whether it can sustain the breakout. If it does, the expectation is that it could continue toward $4,200 and beyond, setting new records in the process. Analysts agree that the alignment between ETH’s price and the expanding M2 supply is not a coincidence, and that this trend could be a key driver of the next leg up in the market [1].

Source: [1] title: Ethereum Tracks M2 Liquidity as M2 Prints Another High, ETH Accumulators Double Down

url: https://cryptonewsland.com/ethereum-tracks-m2-liquidity/