Golden Finance reported that well-known trader Pentoshi recently shared his latest judgment on the market trend of Ethereum (ETH) on social media. He said, “This is a very good closing for ETH. I think it’s the ‘first day’ of this breakout trend.” We should witness the subsequent rise of ETH. It seems that numerous favorable catalysts from traditional finance (TradFi) and the SEC are generating momentum, along with the support of ETFs. Pentoshi’s viewpoint has sparked widespread discussion in the cryptocurrency community, with many investors and market observers focusing their attention on the future performance of ETH.
Judging from the recent market data, ETH has indeed shown a strong upward trend. As of the time of publication today, the price of ETH is $2,618.75, up $84.66 from yesterday, representing a growth rate of 3.34%. In the past 24 hours, ETH has reached a high of $2,625.74 and a low of $2,533.64. The trading volume has also risen significantly, indicating the high trading enthusiasm in the market. Over a longer time span, the price trend of ETH is equally remarkable. Since the beginning of this year, with the overall recovery of the cryptocurrency market, the price of ETH has steadily risen, from less than $2,000 at the start of the year to nearly $2,600 now, with a cumulative increase of more than 30%.
The favorable factors in traditional finance and the SEC mentioned by Pentoshi have a significant impact on the price trend of ETH. On the one hand, traditional financial institutions are increasingly participating in the cryptocurrency market. Many large banks, hedge funds and other institutional investors have begun to venture into the Ethereum investment field, injecting a large amount of funds into the market by directly purchasing ETH or investing in related financial products. For instance, after the globally renowned asset management company BlackRock launched the Ethereum Spot ETF, it attracted the attention of many traditional investors, with a large amount of funds flowing into the ETF, which in turn indirectly boosted the demand for ETH. According to statistics, since the listing of the Ethereum Spot ETF, the asset management scale of related products has exceeded several billion US dollars, which has played a significant supporting and promoting role in the price of ETH.
On the other hand, the shift in regulatory attitude of the U.S. Securities and Exchange Commission (SEC) has also sent positive signals to the ETH market. Recently, the SEC’s approval of the Ethereum Spot ETF marks an important step forward for the cryptocurrency market on the path to compliance. This move not only enhanced the recognition of Ethereum in mainstream financial markets but also lowered the entry threshold for investors, enabling more ordinary investors to participate in ETH investment through traditional financial channels. Previously, the strict regulation of the SEC had deterred many investors from cryptocurrencies. Now, the moderately relaxed regulatory environment has greatly boosted market confidence and attracted more funds to flow into the ETH market.
In addition, the ETF itself has a significant boosting effect on the price of ETH. The launch of the Ethereum Spot ETF enables investors to trade ETH as conveniently as buying and selling stocks, which greatly enhances the market liquidity of ETH. When the market demand for ETH increases, ETF market makers need to purchase ETH in the market to meet the subscription demands of investors, thereby directly driving up the price of ETH. Meanwhile, the existence of ETFs also provides the market with more price discovery mechanisms, enabling the price of ETH to more accurately reflect the market supply and demand relationship.
On the technical front, ETH has also shown a good upward trend. Judging from the price chart, ETH has recently successfully broken through the key resistance level and formed a clear upward trend. Technical indicators such as moving averages and the Relative Strength Index (RSI) all indicate that ETH is in an overbought zone, but the bullish sentiment in the market remains high, suggesting that investors are confident in the subsequent rise of ETH. In terms of the Ethereum ecosystem, the upgrade of Ethereum 2.0 is continuously advancing. The gradual implementation of sharding technology has significantly enhanced network efficiency, attracted more developers and projects to settle in, further strengthening the ecosystem competitiveness of Ethereum and providing a solid fundamental support for the increase in ETH prices.
However, the market is not entirely optimistic either. The high volatility of the cryptocurrency market remains a risk that investors need to confront. Although ETH is currently on an upward trend, its future price may still experience significant fluctuations due to market sentiment, changes in the macroeconomic environment, or sudden adjustments in regulatory policies. For instance, if the global economic situation deteriorates, investors may reduce their investment in risky assets, and the prices of cryptocurrencies, including ETH, may be impacted. In addition, the competition in the cryptocurrency market is becoming increasingly fierce, and new blockchain projects are constantly emerging. If Ethereum lags behind its competitors in technological innovation or market expansion, it may also have an adverse impact on its price.
Overall, trader Pentoshi’s judgment on the current breakout of ETH is based on multiple favorable factors in the current market. ETH has shown positive signals in terms of price trend, traditional financial participation, regulatory environment, and ETF support. However, while investors are paying attention to the potential for ETH to rise, they also need to fully recognize the market risks and make investment decisions with caution. As the market develops, the subsequent performance of ETH still needs to be continuously monitored for its dynamic changes in all aspects.
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