Ethereum (ETH), the second-largest cryptocurrency by market capitalization, is making waves as it approaches the highly anticipated $4,000 level. The recent approval of Ethereum ETFs by the U.S. Securities and Exchange Commission (SEC) has provided a significant tailwind for the digital asset, fueling speculation about its future price trajectory.

Despite a slight pullback on Tuesday, with ETH trading around $3,850, down approximately 1%, the overall outlook for Ethereum remains bullish. The SEC's historic decision to approve Ethereum ETFs is expected to attract substantial investor demand, similar to the blockbuster success of Bitcoin ETFs launched earlier this year.

Analysts at Bernstein predict that Bitcoin and Ether ETFs could grow to a market cap of $450 billion in the coming years, with inflows of $100 billion into crypto ETFs in the next 18-24 months. This influx of institutional capital is likely to drive the price of Ethereum higher.

Interestingly, Ethereum has yet to reach new record highs in this bull cycle, trading 21% below its 2021 peak. In contrast, Bitcoin is just 8% below its all-time high. This underperformance was largely due to regulatory uncertainty surrounding Ethereum, which has now been resolved with the SEC's approval of Ethereum ETFs.

As the upside risks to the Ethereum price grow, it could be one of the best cryptocurrencies to invest in currently. The next key level to watch is a retest of the 2024 highs near $4,100, which will serve as a significant resistance zone. Once the selling pressure in this area is overcome, the path will be clear for a sustained rally back to the 2021 highs of nearly $4,900.

Technical analysis suggests that if Ethereum can repeat its 2020-2022 bull run performance, it could potentially reach as high as $15,500, based on the 3.618 Fibonacci extension level from its 2018 lows. Even a more conservative target of the 2.618 Fibonacci extension beyond its 2021 record highs from the 2022 lows would still imply a price above $11,000.

For investors seeking even greater upside potential, the meme coin market may offer opportunities. However, caution is advised due to the prevalence of scams in this space. One promising new project that has caught the attention of analysts is Wiener AI (WAI), a sausage dog-themed AI meme coin with the potential for significant gains.

As Ethereum continues its ascent towards the $4,000 mark, the crypto community eagerly awaits the launch of Ethereum ETFs and the potential catalysts that could propel the digital asset to unprecedented heights.