Ethereum's recent rally saw its price jump nearly 40% last week, moving from around $1,800 to $2,500, attributed to a successful network upgrade and easing global trade tensions. Analysts, however, caution that future gains depend on stronger fundamentals. Optimism in traditional markets, marked by substantial gains in the Dow and S&P 500, was spurred by U.S.-China trade discussions. Unlike Bitcoin ETFs which saw significant inflows, Ethereum faced $55 million in outflows, suggesting that the surge was primarily driven by crypto-native investors rather than institutional ones. Despite the excitement over Ethereum's performance following the activation of its latest upgrade, analysts emphasize the need for sustained demand and clarity on regulatory issues for any new highs. Estimates suggest a 20% chance of Ethereum hitting $4,000 by year-end, contingent on ongoing market conditions and institutional interest.

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