Ethereum (ETH) Price Today: Key Levels to Watch as Chinese Money Supply Nearly Doubles

Ethereum (ETH) price trades today at $2,655.1 as of 11 PM as China’s M1 money supply nearly doubled from 60 trillion Yuan to 112 trillion Yuan. Ether prices hit a daily high of $2,838.9 today after rising -3.24% on September 27.

This dramatic increase has ignited discussions about its potential impact on major cryptocurrencies, including Ethereum. Let’s explore the details and implications of the sudden spike in money supply on Ethereum price predictions.

Ethereum Price Today

*Ethereum price updated as of 11 PM.

Chinese Money Supply Surge: What’s Happening?

On February 21, 2025, Bluntz_Capital shared a chart on X showing a sharp vertical spike in China’s M1 money supply. The chart shows a sudden doubling of the money supply, raising questions about inflationary pressures and their ripple effects on global assets, including cryptocurrencies. However, as noted by another popular analyst, Benjamin Cowen, China announced changes in how it calculates M1 in December 2024, which may explain the apparent spike rather than an actual monetary expansion.

Despite the uncertainty, this development has fueled speculation about its impact on risk assets like Ethereum. The Ethereum price, currently at $2,662.15, is a focal point for investors wondering if this could trigger a bull run.

Ethereum Price Forecast: Key ETH Price Levels to Watch Today

As of February 21, 2025, Ethereum price trades at $2,655.1 after rising 4.5% this week. Investors are closely watching whether the recent spike in China’s money supply event could drive demand for Ethereum price, especially if it signals broader economic stimulus or inflationary pressures in China, potentially boosting risk on assets like cryptocurrencies.

The four-hour chart shows Ethereum price has bounced 4.02% after flipping the weekly VWAP on Thursday. In this recent uptick, ETH has also overcome the value area formed during the past 17-day consolidation. This value area is where 68% of the volume was traded and it extends from $2,622 to $2,765.

If this bullish trend continues, the next key level to watch is $2,869, resting above this is the buy-side liquidity. Beyond this, $3,119 and $3,300 are critical resistance levels that could prevent a bullish reversal.

A reentry into the value area after sweeping the liquidity above $2,869 is likely, considering Bitcoin’s (BTC) uncertain outlook. In such a case, the $2,621 and $2,682 are two critical support levels to watch.

May traders are suggesting to be patient and not open long positions until the BTC price clears $100K as the probability of reversal is high between $97K and $99K. For example, crypto analyst Follis posted to X stating, “not interested in FOMO’ing here” with a Bitcoin chart.