An analysis by the crypto hedge fund XWIN Finance suggests that an upcoming Ethereum revaluation phase could push the asset’s price to $10,000. This projection is directly dependent on market liquidity dynamics. The firm highlights that while Bitcoin has already capitalized on the increased money supply, Ethereum still has significant growth potential ahead.
The prediction is based on several macroeconomic factors and on-chain data. One of the pillars of the analysis is the all-time high of the U.S. M2 money supply, which has reached approximately $22.2 trillion. According to XWIN Finance, this excess liquidity has not yet been fully reflected in ETH’s price, setting the stage for a significant rally and a new valuation.
What Drives This Bold Prediction?
Another key indicator supporting this thesis is the notable decrease in the supply of Ethereum available on exchanges. Reserves have dropped by over 25% since 2022, now standing at around 16.1 million ETH. This reduction in available supply suggests lower selling pressure. Furthermore, consistently negative netflows indicate that investors are moving their assets to private wallets or staking, reinforcing a long-term holding strategy.
XWIN Finance’s perspective is not isolated. Arthur Hayes, co-founder of BitMEX, has also endorsed the prediction of ETH at $10,000. Hayes links this potential to what he calls a “wartime economy” that could flood the system with credit, favoring risk assets like Ethereum. This optimistic sentiment is bolstered by the recent performance of institutional investment products.
The Impact of ETFs and Technical Resistance
Spot Ethereum Exchange-Traded Funds (ETFs) in the United States have played a crucial role. In the last week, these products saw inflows of $1.48 billion, bringing total year-to-date inflows to a record $13.7 billion. This strong institutional interest is a clear sign of growing confidence in the future of the asset and its ecosystem.
From a technical perspective, Ethereum’s price is testing a key resistance zone around $4,800. A successful breakout above this level could pave the way for medium-term targets ranging between $7,000 and $10,000. Although the market is experiencing short-term volatility, medium-term returns have been outstanding. The convergence of fundamental and technical factors creates a favorable scenario for a major revaluation, provided that liquidity conditions are maintained.
