This marks one of its most notable breakouts in over a year, signaling renewed investor confidence.
The rally has triggered speculation that Ethereum could be entering a new bullish phase after months of sluggish performance. Sean Dawson, head of research at Dervive.xyz, told CryptoSlate:
“ETH has a 20% chance of exceeding $4,000 by Christmas (up from 9% last week) and a 12% chance of hitting $5,000. The chance of ETH falling below $1,500 by Christmas has dropped to 15% (down from 40%).”
Market analysts have pointed out that several key factors, including recent technical improvements, rising institutional backing, and easing global tensions, appear to be fueling Ethereum’s recent surge.
The update introduced improvements across the network’s wallet functionality, streamlined validator performance, and expanded Layer 2 support. These upgrades are expected to make Ethereum more efficient and easier to use across decentralized finance applications.
Meanwhile, macroeconomic developments are also lifting sentiment in the broader market.
These geopolitical developments support a broader risk-on mood in global markets, giving Ethereum further room to rise.
