Recently, the market for Ethereum has been quite strong, with prices breaking through 4300, reaching a new high since the end of 2021, and a daily increase of over 2%.

On the policy front, Trump's executive order allows cryptocurrency to be included in 401(k) retirement accounts, lowering the participation threshold for ordinary investors; Ripple and the SEC have reached a settlement, easing market concerns about regulation; the SEC has shifted to support Ethereum staking-based ETFs, although it has not yet been officially approved, expectations have already heated up the market.

On the funding side, actions from institutions and large capital are evident. BlackRock has increased its holdings of Ethereum by $158 million, surpassing Bitcoin purchases; whales have cumulatively increased their holdings of 171,000 Ethereum, worth over $670 million. These funds entering the market have directly pushed up prices.

The impact of technical upgrades is also being released. The Cancun upgrade has significantly reduced Layer 2 transaction costs, alleviating the previous issue of high fees, making everyone more willing to use DeFi and NFTs, leading to increased activity in the Ethereum ecosystem and rising prices due to demand.

Technically, the daily MACD is diverging upwards, indicating a clear bullish trend, with prices stable above the EMA7. However, the 4-hour MACD histogram is shortening, with the fast and slow lines converging, and the RSI nearing overbought levels, suggesting a possible short-term pullback, akin to needing a breather after running too fast.

Overall market sentiment is optimistic, with cryptocurrencies rising across the board, but risks must also be noted. On August 10, over 100,000 people faced liquidations, with the largest single case in Ethereum, valued at over $10 million, indicating significant volatility.

Currently, multiple favorable factors are overlapping, with institutional entry, technical upgrades, and policy improvements all contributing. But don't follow the hype blindly; it’s essential to pay attention to the progress of spot ETFs and the actual data of Layer 2, as these may influence future trends.