Ethereum (ETH) has once again demonstrated its strong market performance, successfully breaking through the $4000 mark and setting a new historical high of $4216. In the past 24 hours, the price of ETH has risen by 3.5%, with a monthly increase of as much as 50%. The current price has reached 85% of the historical highest point, with market capitalization soaring to $501.6 billion and daily volume reaching $47.69 billion.

There are multiple driving factors behind this recent pump. Firstly, the Ethereum network has made significant breakthroughs in its technical upgrades. The latest Pectra upgrade has optimized the EVM parallel processing capability, increasing the transaction processing speed (TPS) to 387, greatly enhancing network performance. This technological advancement is directly reflected in on-chain activity, with the daily number of transactions soaring to 1.87 million, nearly hitting its ATH.

Secondly, the continuous entry of institutional investors provides strong support for ETH. IVD Medical announced that it will include ETH in its treasury allocation strategy, while Fundamental Global has established a special fund with a scale of 5 billion dollars, focusing on investment in the Ethereum ecosystem. These initiatives not only increase market demand for ETH but also highlight institutional confidence in the long-term development of Ethereum.

In addition, the gradual clarification of the regulatory environment has also provided favorable conditions for the rise of ETH. The implementation of the EU's MiCA (Markets in Crypto-Assets) legislation has brought a clearer regulatory framework to the cryptocurrency market. At the same time, the acceleration of the approval process for Ethereum ETFs in the United States has injected positive signals into the market. These factors combined have led to an increase in the long-short ratio of ETH to 1.87:1, indicating that market sentiment is leaning towards optimism.

With the continuous development and improvement of the Ethereum ecosystem, its applications in decentralized finance (DeFi), non-fungible tokens (NFTs), and other fields are expanding. The value of ETH has gained more recognition. However, investors still need to be cautious and closely monitor market trends and potential risks.