Ethereum (ETH) performed impressively this week, with prices breaking through $4,330, setting a new high since the end of 2021. This increase not only marks six consecutive weeks of gains but also sparked enthusiastic discussions in the market about its future trends.

Multiple factors have driven this wave of price increase. First, institutional investors' interest in ETH continues to rise, with discussions around spot ETFs remaining heated and a substantial influx of funds into the market. On-chain data shows that large investors have been continuously increasing their holdings over the past two weeks, reflecting the optimistic sentiment in the market. Secondly, the technical upgrades in the Ethereum ecosystem are also driving the price up. The upcoming Pectra upgrade is expected to significantly enhance network performance, security, and compatibility with layer two solutions, injecting new vitality into the ecosystem.

From a technical analysis perspective, Ethereum has broken through a significant resistance level that has lasted for 1.5 years, showing a strong upward trend on the weekly chart. In the short term, $4,533 will be the next key resistance level, and if this level can be surpassed, the target of $5,000 will be within reach. However, investors should also pay attention to the support range of $4,100 to $4,200, which will determine whether the bulls can continue to dominate the market.

The fundamentals of Ethereum are also showing positive signals. The trading volume of Layer 2 solutions continues to grow, and the network's Gas consumption has returned to bull market levels, indicating that user activity is recovering. The total value locked in decentralized finance (DeFi) has surpassed last year's peak, demonstrating that investors' confidence in the Ethereum ecosystem is returning. Although the NFT market has not yet fully recovered to the peak levels of 2021, some high-quality projects have begun to show signs of price recovery.

Looking ahead, Ethereum may oscillate in the range of $4,300 to $4,500 in the short term. If it successfully breaks through $4,533, it is likely to launch an attack towards $5,000. In the medium term, if ETFs continue to attract capital inflows, coupled with a favorable macro environment, Ethereum is expected to challenge the target range of $6,000 to $8,000 within the next 1 to 3 months.

However, investors must also be wary of potential risks. If Bitcoin experiences a significant pullback or if the Federal Reserve suddenly tightens monetary policy, it could lead to Ethereum falling back to the level of $4,000 or even $3,700. In this market filled with opportunities and challenges, maintaining rationality and vigilance is crucial.