ETH breaks $5024! Institutional ETFs bought $450 million in a single day, is the next target $5500?
Trend: The moving average bullish arrangement and rising trend remain unchanged, resistance at $5024 has been broken or is challenging a new high, a drop below support may pull back to $4400. Trading volume: Rebounding from the bottom, breaking through $5024 requires volume support.
News
Policy: US stablecoin policies drive capital inflow; Europe’s digital euro plan enhances ETH’s long-term value; limited impact from Hong Kong regulations. Funds: Institutional ETFs BlackRock and Fidelity saw net inflows exceeding $450 million in a single day, totaling over $29 billion; Peter Thiel bets on ETH becoming the preferred choice for RWA settlements; listed companies purchase ETH as reserves. Technical upgrade: After the Electra upgrade, throughput increased to 10,000 TPS, a 400% increase, and Gas fees decreased by 85%, while DeFi locked value surpassed $210 billion; Layer 2 Arbitrum and Optimism see daily trading volume surge. Sentiment and risk: Federal Reserve rate cut expectations drive “greed” sentiment, but caution is needed for short-term overheating; $3 billion in tokens will unlock on August 30, possibly bringing selling pressure; macro uncertainties (CPI, geopolitical issues) may trigger volatility.
Operational Advice
Short-term: A break above $5024 targets $5200-$5500; a drop below $4671 may pull back to $4400. Mid to long-term: Institutional funds and technical upgrades, along with the 2026 Petra upgrade and ecological expansion, support ETH’s advancement towards $7500-$10000. Strategy: Spot: Take partial profits on support breaks, increase positions on resistance breaks. Contracts: Cautiously chase highs and watch for volume. Institutions: Gradually allocate through ETFs, participate in staking with an annualized return of 8%-10%.
Risk Warning
Regulatory changes such as strong regulation of US stablecoins. Restart of Federal Reserve rate hike expectations or CPI exceeding expectations. Technical risks of smart contract vulnerabilities and network congestion.
Market Impact
Funds may flow from BTC/altcoins to ETH, watch for sector rotation. Layer 2, DeFi, and NFT sectors welcome opportunities, with related tokens ARB and OP potentially catching up. The narrative of ETH as a “productive asset” strengthens, shifting the market from speculation to value investment, which is a long-term boon for the industry.
Summary: ETH is in a rising period resonating with technical and news factors, with a short-term target of $5024, looking to rise to $5500 after breaking; mid to long-term aiming above $7500. Seize ecological expansion opportunities while balancing risk and reward.
