Ethereum (ETH) led the market today, breaking through $2,800 at one point, with a daily increase of more than 4%. What exactly is the catalyst that drives the surge in ETH prices? The following three key factors are worth paying attention to:

1. Pectra upgrade is approaching, enhancing market expectations

Ethereum’s Pectra upgrade is not expected to go live until March 2025, but will be tested on testnets Sepolia and Holesky throughout February, and market expectations for this upgrade are growing.

Key highlights of Pectra upgrade:
Improved scalability - doubled block "blob" storage space, increased transaction speed, and reduced gas fees.
Reducing ETH supply - Ethereum researcher Justin Drake expects that the Pectra upgrade may reduce ETH issuance while increasing burns, further strengthening the “ultrasonic currency” narrative.
Attract developers and users - A more efficient and low-cost network may attract more developers and users, enhancing the ecological value of Ethereum.

Market sentiment generally believes that Pectra has not yet been fully factored into the current price of ETH, and as the landing time approaches, it may bring further upward momentum.

2. Large inflow of funds into spot Ethereum ETF

In the past five days, the spot Ethereum ETF has recorded continuous net inflows of funds, with a total amount of up to US$421.5 million. The inflow since the beginning of the year has reached US$1.1 billion, and the cumulative net inflow of funds has exceeded US$3.17 billion!

Highlights of capital flows:
BlackRock ETF (ETHA) was the largest buyer, with inflows of $579 million from January 21 to February 5.
The market expects that the spot ETH ETF will usher in larger-scale institutional buying in 2025, especially after the regulation of staking is relaxed, which may further surge the demand for ETH.

The continuous influx of institutional funds not only strengthens ETH's upward trend, but also provides strong support for the market.

3. The $3,000 mark becomes a key technical level

ETH bulls are struggling to break through $3,000, a key psychological level that will determine future trends:

Technical analysis: After breaking through $3,000, ETH may see a 20%-35% increase. Historical data shows that a breakthrough is usually followed by a strong rise.
The short-term support level is $2,700. CoinGlass liquidation data shows that a large amount of buying is concentrated in this area. If it pulls back to this level, it may attract funds to re-enter the market.
The relative strength index (RSI) is still at a low level and if it breaks through $3,000, the market may enter a new up cycle and further challenge $4,100 (December 2023 high).

Can ETH start a new bull market?

ETH currently has strong upward momentum, but the $3,000 mark is still a key battlefield. Once it breaks through and stabilizes, ETH may usher in a 44% increase and hit $4,100.

With Pectra upgrade + ETF funds + key technology breakthroughs, ETH is expected to enter a new round of rising cycle! #币安HODLer空投BERA #比特币盘整将持续多久？ #比特币国家战略储备 #微策略募资支持比特币战略 #比特币四年周期将改变？ $ETH $BTC $TRUMP