Ethereum (ETH) has just made a strong breakthrough above the 4,200 USD threshold, bringing the market capitalization back above 510 billion USD. Thanks to a 22% increase over the past week, co-founder Vitalik Buterin has now returned to the on-chain billionaire status, with his public wallet value exceeding 1.03 billion USD.

According to analysts, this is the result of a 'perfect storm' from three main drivers that are simultaneously supporting Ethereum.

Driver #1: A massive wave of institutional investment into ETH

Spot Ethereum ETFs currently hold over 5.43 million ETH, a rapidly increasing number thanks to growing confidence from institutional investors. Some experts predict that if approved by regulators, these ETFs will add staking features to generate yields, further increasing their appeal to long-term investors.

Not only ETFs, but a new trend is also forming: listed companies are adding Ethereum to their treasury. Companies like Bitmine, GameSquare, and BTCS have begun purchasing ETH to include in their balance sheets. According to Standard Chartered, this group of companies has bought about 1% of the total ETH supply since June and could increase to 10% in the future.

Driver #2: U.S. policy shifts to support crypto

In Washington D.C., the legal atmosphere for cryptocurrencies is changing dramatically in a positive direction. President Donald Trump recently signed the GENIUS Stablecoin Act, the first large-scale stablecoin legislation in the U.S.

Meanwhile, the House of Representatives has passed the Anti-CBDC Act and the Clarity Act to clarify the oversight authority between the SEC and CFTC. These bills are awaiting Senate consideration. In particular, a new executive order has paved the way for 401(k) retirement funds to invest in crypto, significantly expanding Ethereum's potential customer base.

Driver #3: Technical analysis gives breakout signals

On the price chart, ETH has successfully broken the 4,000 USD level after four attempts, rising to 4,200 USD - the highest in this cycle. Analyst Mags points out that since the bottom in 2022, ETH has continuously created higher lows and is supported by an upward trend line.

If the weekly candle closes above 4,000 USD is confirmed, ETH could advance to 4,800 USD and even reach a new peak above 8,000 USD. Conversely, if it cannot hold the current level, the price may correct to the support range of 3,200 – 3,400 USD before continuing the long-term upward trend.

Conclusion

Ethereum is at a critical stage, converging enough factors from institutional cash flow, legal support to technical analysis. If the current trend continues, ETH has the potential to conquer new price peaks, taking the network deeper into the next explosive phase of the crypto market.