Ethereum (ETH) has recently solidified above $3500 again, but market sentiment remains cautious. However, this may be the last investment window of the year for doubling in value.

On-chain data analysis shows that the Ethereum network presents multiple positive signals. First, the amount of staking continues to rise, reflecting investor confidence in the long-term prospects of the network. Second, through the burning mechanism, the destruction rate of ETH has accelerated, leading to a gradual decrease in circulating supply, which may exert upward pressure on the price.

At the same time, institutional funds are quietly flowing into the cryptocurrency market. There may be two main driving factors behind this: first, the expectation of Ethereum ETF approval by the end of the year, and second, the potential explosion of Layer 2 scaling solutions (L2). These factors could act as catalysts for driving up the price of ETH.

Analysts predict that ETH could reach a high of $7000 in the future. If this prediction comes true, investors would have the opportunity to gain approximately 100% returns based on the current price. However, the real challenge is that most investors tend to wait until the price reaches around $5000 before they start chasing the price, at which point the profit margin has already significantly shrunk.

In the financial markets, those who often achieve high returns are the investors who dare to make decisions amidst uncertainty. Of course, everyone should decide whether to participate based on their own risk tolerance and investment strategy.

Regardless, the current market environment deserves close attention. The fundamentals of Ethereum are continuously improving, and various positive factors are accumulating, which may lay the groundwork for future price increases. Investors need to weigh the risks and potential returns to make informed decisions.