Recently, the price of Ethereum has performed remarkably well, attracting widespread attention in the market. Currently, the ETH/USDT trading pair is quoted close to 3,871.50, with strong upward momentum in the short term.

From a technical perspective, the 4-hour candlestick shows a small bullish pattern, with the closing price higher than the opening price and an increase in trading volume. However, the MACD indicator indicates a weakening of bullish strength, while the KDJ indicator is in a neutral position. Currently, $3,845 is the key resistance level, while $3,622 is an important support level.

In terms of market dynamics, the continuous inflow of institutional funds is one of the main factors driving the price rise. ETFs and corporate holdings have cumulatively absorbed about 5 billion USD of ETH, resulting in a supply-demand imbalance with a ratio of 32:1. It is worth noting that recently, about 1.92 billion USD of early investors have unbound their staking.

On-chain activities are also showing a positive trend, with new staking demand reaching $1.3 billion. In addition, the Verge upgrade of the Ethereum network further enhances technical security, laying a foundation for long-term development.

Looking ahead, if Ethereum breaks through the resistance level of 3,845 USD, it is expected to test the 4,000 USD mark. However, if it falls below the support level of 3,545 USD, it may pull back to around 3,300 USD. From a fundamental perspective, some institutions predict that there could be a capital inflow of 20 billion USD into the Ethereum market over the next 12 months, but investors should remain cautious of short-term pullback risks.

It is worth noting that there is a certain degree of divergence between the current increase in trading volume and the rise in prices, which may affect the sustainability of the upward momentum. In addition, the Federal Reserve's policies and overall market sentiment may also impact short-term price trends.

Overall, Ethereum is currently in a high-level consolidation phase, with medium to long-term prospects still supported by institutional accumulation and technological upgrades. However, investors need to closely monitor the breakout of key price levels and remain vigilant to market risks. In this cryptocurrency market filled with opportunities and challenges, rational analysis and cautious decision-making will be the key to success.