Ethereum (ETH) recently broke through the $4000 mark again, attracting widespread attention in the market. Looking back at the price history of Ethereum, several key periods can be clearly seen:

In 2021, Ethereum experienced a significant bull market, reaching a historical high of nearly $4900 in November. However, due to changes in the global economic environment, the cryptocurrency market as a whole entered a period of adjustment, and the price of Ethereum fell to around $880 in 2022.

Entering 2023 to 2024, Ethereum begins to show signs of recovery. The momentum of this rebound comes from multiple aspects: first, the market's positive expectations for Ethereum ETFs; second, the rapid development of Layer 2 scaling solutions (such as Optimism and Arbitrum), which greatly enhance the performance of the Ethereum network; third, the deflationary effect gradually emerging after the implementation of the EIP-1559 proposal.

Currently, Ethereum breaking through the $4000 mark is of great significance. This price level is close to the key resistance range formed during the bull market high in 2021 (4200-4800 USD). If it can effectively break through this range, it may open up greater upward space for Ethereum.

It is worth noting that since the implementation of the EIP-1559 proposal, the supply growth rate of Ethereum has turned negative. Data for 2024 shows that the net annual inflation rate of Ethereum has dropped to -0.8%. This deflationary trend, coupled with approximately 25% of the circulating supply being locked in staking, may further reduce market supply pressures in the long term.

Looking ahead, the price trend of Ethereum will continue to be influenced by multiple factors such as technological advancements, market sentiment, and macroeconomic conditions. Investors and market participants need to closely monitor changes in these factors to better seize opportunities for the development of Ethereum.