Ethereum's recent rally, which saw the price surge nearly 40% from $1,800 to $2,500, was largely driven by a successful network upgrade and easing global trade tensions. Analysts suggest that while this surge indicates a return of risk appetite for digital assets, future gains rely heavily on stronger fundamentals beyond mere market sentiment. Notably, U.S. President Donald Trump’s announcement of positive trade developments aided overall market optimism. Despite the current bullish outlook, the lack of institutional inflows into Ethereum ETFs, contrasting with Bitcoin ETFs that saw significant net inflows, raises questions about the sustainability of this rally. Analysts believe that while Ethereum's recent upgrade has bolstered confidence in its scalability and potential for institutional adoption, the market remains susceptible to macroeconomic conditions. Estimates now assign a 20% probability for Ethereum to surpass $4,000 by year-end, up from 9% last week, yet caution prevails as experts advocate for a focus on robust fundamental shifts rather than temporary sentiment-driven moves.

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