Key Insights
- Eric Trump agrees that Ethereum is undervalued and should trade above $8,000.
- The M2 money supply hit a record $95.58 trillion, and has historically fueled crypto rallies.
- The falling Bitcoin dominance is giving Ethereum more room to grow over the rest of the year.
Ethereum has been gaining serious attention again,; this time, it’s not just from crypto analysts. Eric Trump, son of U.S. President Donald Trump, recently voiced his support for Ethereum’s long-term value. He agreed with predictions that ETH is undervalued and should be trading over $8,000.
Why Ethereum Price May Be Lagging Behind Liquidity
One of the main reasons analysts are calling ETH “undervalued” is the surge in the M2 money supply. This recently reached a record high of $95.58 trillion.
For some context, the M2 represents the total amount of money circulating in the economy. These include bank accounts, checking deposits and other liquid assets.
Historically when M2 rises, more money flows into riskier assets like crypto. This pattern has held up across several market cycles and this year, Ethereum appears to be following this same trend.
Crypto analyst Ted Pillows compared ETH price to M2 supply and concluded that Ethereum should already be above $8,000. He described ETH as one of the “best trades out there” right now. Eric Trump reposted this chart and simply replied, “Agreed”.
Bitcoin Dominance Is Falling, andcalld News for Ethereum
Another bullish indicator for Ethereum is the steady decline in Bitcoin dominance. Think of Bitcoin’s dominance as the percentage of the crypto market’s total value held by the asset.
As of late July, Bitcoin’s market dominance has dropped below 60%. It is a level not seen since early February. In contrast, ETH’s price has surged by 77% in the same period.
History indicates that when Bitcoin loses dominance, Ethereum tends to rally. During past cycles in 2017 and again in 2021, Bitcoin dominance dropped while Ethereum soared by 10,000% and 850%.
The ETH/BTC ratio has also risen by 40% in just one month. Analysts are pointing to this as further evidence that capital is rotating from Bitcoin to Ethereum.
A Conservative and Optimistic Path for ETH
Multiple analysts are now offering price targets that show Etheis as bullish. Crypto trader Wolf recently laid out two scenarios. The first was a conservative target of $8,000+. On the other hand, the second was an optimistic target of $13,000 and beyond.
Wolf warned of a 20–25% pullback after the cryptocurrency’s all-time highs. He called it a final shakeout before Ethereum “ignites” again. He also expects the next big move to come in Q4 of this year.
These predictions are based on technical breakouts, rising institutional demand, and a stronger market sentiment. The ETFs, corporate treasuries, and retail investors are all showing interest at this point. Ethereum is setting itself up as the next big growth story in crypto.
Eric Trump Backs Ethereum’s Value Proposition
Eric Trump’s involvement in crypto isn’t new. As co-founder of World Liberty Financial, he has been vocal about his support for digital assets.
His recent endorsement of Ethereum’ isn’t just a tweet. It shows that the sentiment is improving for Ethereum, especially among politically-connected investors. Whether or not investors agree with the Trump family’s politics, their influence on the sector is undeniable.
Eric’s nod to Ethereum’s $8,000 valuation highlights a major turning point in institutional sentiment. It reflects a growing acceptance of crypto assets. This is especially as U.S. regulators warm up to the idea of ETFs tied to cryptocurrencies.
Short-Term Risks Still Exist
Despite the long-term bullish outlook, Ethereum isn’t without its short-term challenges. Markus Thielen is the head of research at 10X Research. Markus warned that the rising borrowing costs on Ethereum’s lending platforms could pressure the market.
This demand spike has driven interest rates up. It is now making the asset not only more expensive, but also less profitable to borrow ETH. If this trend continues, it could create short-term sell pressure and reduce ETH’s traction.
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