The rise of Ethereum has just begun!

On June 24, influenced by the unexpected ceasefire agreement between Israel and Palestine, global stock markets surged collectively, with Bitcoin rising nearly 5% during trading, completely recovering all losses from this round of geopolitical conflicts. However, the market's rebound did not eliminate the cautious sentiment among investors. For example, during the process of ETH rebounding 16% from its low, its funding rates have remained in negative territory for an extended period, and the extent of the negative values is further widening, indicating that investors still have a strong defensive mindset against a potential second bottom.

In an upward trend, a shift to negative funding rates often indicates that the token price is hitting key resistance levels, which more reflects investors hedging due to increased short-term uncertainty rather than a bearish outlook for the future. For instance, from late April to early May this year, Ethereum entered a consolidation phase, with a surge in market hedging demand leading to an ongoing expansion of negative funding rates; however, as the token price broke through resistance, the market quickly entered a continuous short squeeze mode. Therefore, if Ethereum subsequently breaks through the tight range of $2500-$2600, it could similarly trigger a short squeeze.

From a trading perspective, the likelihood of ETH breaking through key resistance levels in the short term is high, mainly for two reasons:

Firstly, in terms of capital flow, starting in June, ETH whales have notably accelerated their accumulation speed. According to Glassnode data, from June 11 to June 16, the average daily accumulation amount for addresses holding between 1K-10K ETH exceeded 800,000 ETH, pushing the total holdings of this group to over 14.3 million ETH, a record high since 2017.

The Ethereum ETF in the US stock market has continued to experience capital inflow, and even with a significant drop of 10% on June 22, the outflow scale of the Ethereum ETF was only $9 million, indicating that the institutional demand for Ethereum allocation has entered a new phase of growth.

Secondly, in terms of fundamentals, against the backdrop of the impending implementation of the "GENIUS Stablecoin Act," Ethereum, with a 55% share of stablecoins and 81% share of RWA, holds an absolute advantage and is set to become a major beneficiary of the flourishing development of on-chain financial applications like PayFi and RWA. According to CoinMarketCap data, despite most altcoins continuing to decline since May, as of June 24, Ethereum still ranks third in the growth rankings of the top 100 cryptocurrencies by market capitalization with a 41.3% increase. This indicates that the demand for Ethereum is undergoing a paradigm shift from being the 'mother of altcoins' to becoming 'on-chain financial infrastructure.'