The volatility of the cryptocurrency market has once again proven the accuracy of the saying "one day in the crypto world is equivalent to one year in the stock market." Recently, the global economic situation has been impacted by certain policy adjustments, but the cryptocurrency market has shown a different trend.

Ethereum (ETH) has performed particularly impressively, with its price approaching the $4000 mark. This surge has resulted in massive losses for short sellers, with reports indicating that short positions have lost as much as $209 million.

Market analysts had previously predicted that Ethereum would experience a wave of upward momentum. They pointed out that there have been positive news recently, but the market did not respond immediately, which may be because major market participants are controlling the pace to better grasp market sentiment.

However, does this wave of rising prices mean that all the positive factors have already been absorbed by the market? Analysts believe that the upward trend is likely not over yet, and a breakthrough at the $4000 level seems to be a foregone conclusion.

There are two main reasons supporting this viewpoint:

First, the inflow of funds is showing a strong trend. Behind the market fluctuations, large capital is quietly positioning itself. On-chain data shows that the inflow of funds into ETH has significantly increased, especially as large institutions begin to frequently increase their holdings of ETH. This wave of capital accumulation is preparing for a breakthrough of 4000 dollars. It is worth noting that ETH has the strongest capital momentum in the entire encryption currency market, and this rise is largely driven by capital.

Secondly, changes in global economic policies have indirectly influenced the sentiment in the encryption market. Recent news regarding the imposition of high tariffs on products such as semiconductors, along with announcements from some tech giants about large-scale investments in the United States, have caused a certain shock to traditional markets. However, they have unexpectedly led to an influx of funds into the cryptocurrency market. Against the backdrop of increasing uncertainty in the global market, investors seem more inclined to allocate their funds to encryption assets.

As the price of Ethereum continues to rise, the market is closely watching its future trends. In any case, investors should remain cautious, keep a close eye on market developments, and manage risks effectively.