Last night, the crypto circle exploded! Ethereum suddenly staged a deep V reversal, soaring from a low of $3,100 to $3,423.47, with a 24-hour increase of over 5% and a trading volume exceeding $7 billion! Behind this surge lies a triple blow from US economic data, the Federal Reserve's policy shift, and institutions' frantic buying!
One, the sharp drop in PPI data became the trigger, and the cooling of inflation ignited the crypto market.
According to the latest data from the United States, the June PPI year-on-year rate is only 2.3%, hitting a new low in nine months! This figure is far below the market expectation of 2.5%, directly confirming a sharp reduction in inflation pressure. It should be noted that PPI, as a leading indicator of inflation, its decline means a sharp reduction in the pressure for the Federal Reserve to raise interest rates, and the market instantly senses the smell of 'rate cuts approaching'—risk assets like Bitcoin and Ethereum responded by rising!
Even more explosive, EIA crude oil inventories decreased significantly by 3.85 million barrels, exceeding expectations by seven times! Oil prices dropped in response, further alleviating global inflation anxiety. Industry veterans know that inflation data is the 'emotional switch' for the crypto market; last night's combination of data directly turned ETH from a technical correction into the 'new favorite for inflation hedging'!
Two, is Trump going to replace the Federal Reserve Chairman? The expectation of rate cuts completely ignited the bulls.
Heavy news has emerged from inside the White House: Trump is considering firing the current Federal Reserve Chairman Powell! This news instantly ignited the market's fantasy of 'looser monetary policy.' It should be noted that Trump has publicly supported low interest rates multiple times; if he really takes action against the Federal Reserve, the probability of rate cuts in 2025 will soar from the current 4.7% to 30%!
What does a rate cut mean? Simply put, money will be cheaper, and funds will flood into high-yield assets. As 'blockchain gold,' Ethereum naturally becomes the top target for institutional funds. Last night, the open contracts for ETH surged to $44 billion, and the options trading volume skyrocketed by 94.5%, with shorts being liquidated by $82 million—this is not just speculation; it is clearly institutions 'openly grabbing' chips!
Three, institutions are frantically buying, Bit Digital splashes $300 million ALL IN ETH.
The most shocking signal comes from institutions! The US-listed mining company Bit Digital announced: it will issue $67.3 million in stock, all used to increase its holding of ETH! Currently, the company holds over 100,000 ETH, worth $301 million. More critically, they have cleared all Bitcoin holdings and fully shifted to Ethereum!
Why are institutions brave enough to continue adding positions above $3,000? Just look at the technical analysis:
The daily line breaks through the key resistance level of $2,800, forming a 'rising triangle' breakout pattern; MACD golden cross + RSI overbought, the bullish trend is irreversible; the 4-hour chart shows that ETH is testing the Fibonacci resistance level of $3,256, and once it breaks through, it will rush to $3,500!
Four, the passage of the encryption bill is imminent, and the ETH ecosystem welcomes an epic benefit.
The US House of Representatives has just passed the (Cryptocurrency Innovation Act), clearly defining ETH as a 'commodity' rather than a security! This policy directly clears the barriers for institutional entry, with giants like BlackRock and Fidelity applying for ETH spot ETFs. More importantly, after the Ethereum 2.0 upgrade, the staking yield has exceeded 8%, far surpassing Bitcoin's 1.5%, and funds naturally vote with their feet!
Five, what happens after the surge? Experts say: $3,500 is just the starting point!
CoinDesk's latest report indicates: ETH has entered a 'technical bull market.' If it closes above $3,256 this week, it will confirm the 'golden cross' signal, targeting a price of $4,000! Moreover, analysts at Jisu Scripts are more aggressive, believing that under the triple drive of rate cuts + institutional buying + ecosystem explosion, ETH is expected to hit $5,000 by the end of the year!
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