Will Ethereum hit $20,000? Some analysts think so, based on an interesting theory.
The Global M2 Money Supply and Ethereum
The global M2 money supply (basically, all the money circulating in the world) has been climbing. Analysts previously used this to predict Bitcoin’s price, and now they’re applying the same idea to Ethereum.
One analyst, Ted Pillows, overlaid the Ethereum price chart onto the M2 money supply chart. He noticed that while Ethereum’s price is lagging, its position suggests a potential surge.
A Dip Before the Rocket?
Pillows’ analysis suggests Ethereum might dip below $4,000 first. But he sees this as positive! He believes breaking through this support level ($4,000) could act as a catalyst for a massive price increase.
Following the M2 money supply trend, this could lead to a price jump of over 300%! Pillows predicts Ethereum could hit $18,000-$20,000 by 2026. Even a conservative estimate puts it around $10,000.
Other Analysts Weigh In
Pillows isn’t alone in his optimism. Another analyst, Titan of Crypto, also predicted Ethereum reaching $10,000 this year, pointing to a bullish chart pattern.
However, the $4,000 level remains a key hurdle. Analyst Donald Dean highlights that breaking below $4,200 could lead to support at $4,070. If that holds, he sees a potential 50% retracement followed by a climb to $5,766.
The Bottom Line
While these predictions are exciting, remember they’re based on analysis and not guarantees. The crypto market is notoriously volatile. Whether Ethereum hits $10,000, $20,000, or something else entirely, only time will tell.
