The price of Ethereum (ETH) is approaching the $4000 mark, driven by multiple favourable information factors that are pushing this breakthrough.

First of all, institutional funds have continuously flowed into the ETH market in large amounts. In the past week, the spot Ethereum ETF listed in the United States attracted a record $2.18 billion in funds. At the same time, several companies have increased their ETH reserves, with SharpLink becoming one of the largest holders of ETH in the world. The scale of this institutional capital injection provides strong momentum for the rise in ETH prices.

Secondly, the market holds an optimistic view on the prospects of Ethereum. In July, ETH achieved a significant increase of 54.83%, marking the best monthly performance in recent years. Analysts generally predict that if institutional buying continues, ETH is expected to break through 4000 USD in August. This positive expectation is attracting more investors to enter the market.

From a technical analysis perspective, ETH is currently facing a key resistance level at $3919. Once this level is broken, it may trigger a large-scale short covering, driving the price up rapidly. Potential target price levels after the breakout include $4173 and $4378.

The continuous development of the Ethereum ecosystem also supports its valuation. If the total locked value (TVL) of Layer 2 solutions can break through 50 billion USD, it may trigger explosive growth in ecological projects, thereby promoting the reconstruction of ETH valuation. As the application scenarios of the Ethereum network continue to expand, its intrinsic value is expected to further increase.

The macroeconomic environment is also favorable for the rise in ETH prices. Market expectations for the Federal Reserve to cut interest rates are heating up, and historical data shows that ETH usually sees significant price increases within six months after the start of an interest rate cut cycle. In addition, the large-scale issuance of short-term government bonds by the U.S. Treasury may prompt the Federal Reserve to resume quantitative easing policies, in which case cryptocurrencies are often seen as a hedge against inflation.

In summary, multiple factors such as institutional capital inflow, positive market sentiment, technical support, ecosystem development, and a favorable macro environment have significantly increased the likelihood of Ethereum breaking through the $4000 mark. However, investors should remain cautious, closely monitor market trends, and implement effective risk management.