Can Ethereum reach $5,000? Rather than simply speculating on its price, it's better to monitor the changes in several key variables. Historically, this figure isn't outrageous. During the 2021 bull market, it reached $4,868, just shy of $5,000; even during the volatile market of 2022, it reached a high of $3,800. Now that the market has recovered from the bear market and Bitcoin has stabilized at $30,000, the window for mainstream cryptocurrencies to rebound is gradually opening. As the second-largest cryptocurrency, Ethereum is naturally a target for capital. More crucial is the ecosystem's strength. The Layer 2 ecosystem is growing stronger. Arbitrum's daily active addresses are steadily in the millions, and Optimism's transaction costs have been reduced to one-tenth of the mainnet. These scaling solutions are making Ethereum's usability easier. Following the Shanghai upgrade, over 24 million ETH were staked, equivalent to nearly a quarter of the circulating supply being "locked up," significantly reducing market selling pressure. But there are also numerous obstacles. If the Federal Reserve continues to raise interest rates, liquidity will be drained from the crypto market—Ethereum's plunge from over $4,000 to $880 during the 2022 rate hike cycle is a precedent. If the Cancun upgrade is delayed, Layer 2 performance optimization will slow, potentially reducing the ecosystem's appeal. There are also regulatory concerns: if the PoS mechanism is labeled a "security," short-term selling pressure could surge. In the final analysis, $5,000 isn't out of reach, but it's certainly not a sure thing. It depends on whether liquidity is loose, whether the ecosystem is progressing smoothly, and, more importantly, whether market sentiment is strong. For traders, instead of obsessing over numbers, it's better to focus on Layer 2 TVL changes and staked volume data—these are the true barometers of price. The cryptocurrency market is fraught with uncertainty and challenges, but it also holds potential opportunities. When investing in the cryptocurrency market, investors should fully understand the associated risks, remain calm and rational, and adopt a robust strategy to navigate market fluctuations.