IRS Code 351 could lead to institutional ETH buys through tax free treasury share exchanges.
Breaking $4,100 could lead to $4,370, then $4,800–$5,000 ATH zone.
Ethena and Chainlink gain on similar treasury interest, boosting bullish setups.
Ethereum may be heading for new all-time highs as a little-known tax provision gains attention among large holders, according to analyst Brandon Hong. Speaking in a recent market update, Hong pointed to the Internal Revenue Code’s 351 tax exchange as a potential catalyst.
He explained that this mechanism allows long term Ethereum holders to exchange their crypto for shares in treasury vehicles without triggering capital gains tax. This, he noted, could incentivize significant institutional buying, particularly as these treasury companies accumulate Ethereum in bulk.
Key Technical Levels and Market Structure
Hong identified $4,100 as Ethereum’s most important resistance, citing three previous rejections at this level. After breaking above it, the price formed bullish market structure with limited overhead resistance until $4,370, followed by the all-time high range near $4,800 to $5,000.
Hong revealed that he entered long positions at $2,800 and again after the recent breakout. He stressed that such setups offer “asymmetric” opportunities, where defined downside risk contrasts with considerable upside potential.
The analyst also linked Ethereum’s strength to institutional demand, including purchases by treasury vehicles similar to MicroStrategy’s Bitcoin strategy. He credited Ted Rosenthal, founder of an Ethereum based treasury company listed on Nasdaq, with highlighting the tax advantage. These entities, Hong said, use raised capital to acquire Ethereum, with some deploying convertible notes to expand holdings.
Ethena and Chainlink Among Notable Gainers
Beyond Ethereum, Hong discussed other assets benefiting from similar institutional interest. He cited Ethena (USDE), expected to be listed on Nasdaq, as the second major stablecoin related option for institutional exposure after Circle. According to Hong, Ethena has drawn buying interest due to its potential role in treasury structures and stablecoin markets.
Chainlink also drew attention after reclaiming the $20 level. Hong opened long positions, targeting the mid to upper $20 range. He suggested treasury vehicles could emerge for Chainlink as well, attracting institutional flows.
Strategic Patience and Market Timing
Hong emphasized the importance of trading only during trending market phases. He noted that he avoided trades during Bitcoin’s recent consolidation, waiting instead for clear setups in Ethereum, Ethena, and Chainlink. This disciplined approach, he explained, helps traders capture moves with high reward potential while minimizing unnecessary risk.
The post Analyst Predicts Ethereum Could Surge on Little-Known 351 Tax Exchange Loophole appears on Crypto Front News. Visit our website to read more interesting articles about cryptocurrency, blockchain technology, and digital assets.
