Liquidity shifts within the ERC20 ecosystem influence Ethereum (ETH) price through demand and network utility changes. Increased liquidity in ERC20 tokens can enhance ETH usage for gas fees and collateral, driving price support. Conversely, liquidity contractions may reduce network activity and transactional demand for ETH, potentially pressuring prices. Monitoring ERC20 token flow volumes, decentralized exchange activity, and lending protocol liquidity offers insights into ETH price feedback loops.