Ethereum (ETH) has recently drawn widespread attention in the market due to its strong performance. Against the backdrop of global economic turmoil, the price of ETH is approaching the $4000 mark, sparking heated discussions about the future trends of the encryption currency market.

Multiple data points and market trends seem to indicate that the upward momentum of ETH may be far from over. On-chain data shows that approximately $390 million worth of ETH has been accumulated by large addresses over the past week, suggesting that institutional investors may be preparing for future market movements. Meanwhile, the increase in large buy orders on mainstream trading platforms further corroborates this view.

The changes in the global economic situation have also brought unexpected benefits to the cryptocurrency market. As the volatility in traditional financial markets intensifies, safe-haven funds are beginning to shift towards cryptocurrency assets such as Bitcoin and Ethereum. This trend is reflected in the continuous rise in the market capitalization of USDT, which has now surpassed the $110 billion mark.

From a market psychology perspective, the current fluctuations of ETH prices around 3900 dollars have led some investors to believe that it has reached its peak and choose to exit. However, this viewpoint may be overly simplistic. The market often operates outside the expectations of the majority, and the possibility of breaking through the 4000 dollar mark cannot be overlooked.

The robust development of the Ethereum ecosystem is another important factor supporting its price increase. The trading volume of Layer 2 solutions has significantly increased year-on-year, greatly reducing network usage costs. At the same time, emerging protocols like EigenLayer have locked up a large amount of ETH, increasing the scarcity of market supply. It is worth noting that ETH's unique staking mechanism makes it a scarce asset among mainstream cryptocurrencies that can "hold and earn at the same time."

Looking ahead, a breakthrough of ETH above $4100 in the short term seems highly likely. In the long run, ETH is expected to challenge higher price levels by 2025, and it may even set a new historical high. However, investors should remain cautious of the market's high volatility, as major funds may take advantage of price fluctuations for profit-taking.

Overall, despite the significant increase in ETH prices, the cumulative effect of multiple positive factors may drive it into a new upward cycle. Whether it is the active entry of institutional investors or the continuous development of the Ethereum ecosystem, both provide strong support for the long-term appreciation potential of ETH.