Brothers, big news is here! Bloomberg just revealed that Trump plans to sign an executive order allowing U.S. 401(k) pension funds to invest in cryptocurrency! Once this news broke, the crypto community erupted, and Ethereum (ETH) instantly became the center of attention! Today, let's analyze how shocking this news really is, how high ETH can rise, and how the market will develop subsequently.

Policy benefits are like nuclear bombs; massive funds are about to flood in?

Trump's move can be considered a 'game-changer'! The U.S. pension market exceeds $7 trillion, and if just 1% of that flows into the crypto space, it means hundreds of billions in incremental funds. Back in his term, he allowed pension funds to invest in private equity, which was immediately pursued madly by Wall Street. Now it's time for cryptocurrency to enjoy this wave of benefits! Biden had previously restricted pension funds from investing in cryptocurrency, but now Trump is directly 'unleashing' it, clearly aiming to integrate cryptocurrency into mainstream investment assets.

How high can ETH rise in the short term?

From a technical and funding perspective, ETH's performance is remarkable! As soon as the news broke, ETH's price rapidly soared from $3650 to $3820, indicating that major funds are buying aggressively. If this policy is implemented smoothly, the first target price for ETH in the short term is expected to reach $4000 - $4200 (this is the previous resistance level). Once it successfully breaks through, $4000 will no longer be an unreachable dream! However, it is important to note that during the news hype, there may be profit-taking leading to a price drop. But as long as it doesn't break below $3600 during the pullback, it’s an excellent opportunity to add positions.

Three Key Factors for Future Market Development

- Speed of Policy Implementation: If Trump signs quickly, ETH may welcome a 'rocket-like' surge; if it drags until September, market enthusiasm will inevitably cool down.

- Institutional Moves: Financial giants like BlackRock and Fidelity have already positioned themselves in the pension market. If they start buying ETH in large quantities, ETH is likely to enter a long-term bull market.

- Market Correlation: When Bitcoin stabilizes at $120,000, ETH is likely to rise even more aggressively; however, if the U.S. stock market crashes, the crypto market also needs to be cautious, as the correlation between markets is strong.

Retail Investor Guide

- Short-term investors: Keep a close watch on the $3600 key level. If it breaks out with volume, you can enter; if it declines in volume, be patient and wait for a pullback.

- Long-term investors: The entry of pension funds could be a significant boon lasting up to 10 years. Be sure to hold onto your spot and don't let market fluctuations shake you out.

Risk Warning

Never put all your funds into cryptocurrency! Currently, the regulatory details are not clear, so be wary of the market tactic of 'buying the expectation and selling the facts' to avoid being trapped by chasing highs.

Bold Prediction

If ETH successfully surges to $4200 in this wave, we will all witness this 'pension bull market'! But remember, no matter how explosive the news is, the final investment decision should still be based on the candlestick trends. Cautious operation is the key to steady profits in the market.