Ethereum (ETH) is making a push towards its all-time high price, driven by several key factors.

First, the U.S. Securities and Exchange Commission (SEC) approved several well-known institutions' Ether spot ETFs in the second quarter of 2025, a decision that injected strong momentum into the market. With large financial institutions like BlackRock and Fidelity joining in, institutional funds continued to flow into the Ethereum market, with weekly net inflows even exceeding $1.2 billion.

Secondly, the economic model of the Ethereum network itself is also playing an important role. Since the "Merge" upgrade, Ethereum has implemented a large-scale deflationary mechanism. Data shows that the total supply of ETH has net decreased by 1.2 million, with the annual inflation rate dropping to -0.8%. At the same time, the increase in on-chain activity has led to more ETH being burned, further exacerbating the deflationary effect.

Thirdly, the booming development of Layer 2 solutions has brought new vitality to the Ethereum ecosystem. The total value locked (TVL) of second-layer networks such as Base and Optimism has surpassed the $40 billion mark. The decentralized finance (DeFi) and social finance (SocialFi) applications that have emerged on these platforms have attracted millions of new users, expanding the usage and influence of Ethereum.

Finally, the macroeconomic environment has also been favorable for Ethereum. The expectation of a Federal Reserve interest rate cut has increased, with the federal funds rate having fallen to 4.25%, prompting investors to allocate more funds to risk assets, including cryptocurrencies.

With the combined effect of these positive factors, the market generally expects the price of Ethereum to break through $4600 and move towards creating a new historical high. However, investors still need to be cautious and closely monitor market trends and potential risks.