Brothers, big news has arrived! Bloomberg has just revealed that Trump plans to sign an executive order allowing U.S. 401(k) pension funds to invest in crypto assets! As soon as this news broke, the crypto world erupted, and Ethereum (ETH) became the center of attention! Today, let's break down in simple terms just how shocking this news is, to what extent ETH can rise, and how the market will develop thereafter.

Policy benefits are like nuclear bombs, massive funds are about to flood in?

Trump's move can be described as a "king bomb" level operation! The scale of U.S. pensions exceeds $7 trillion, and as long as 1% of that funds flow into the crypto world, it would mean a hundred billion level of incremental funds. Back in the day, when he was in office, he allowed pensions to invest in private equity, which was immediately crazily sought after by Wall Street; now it's the turn of crypto assets to enjoy this wave of dividends! Biden had previously restricted pension investments in crypto assets, but now that Trump is in office, he has directly "unlocked" it, which clearly indicates that he intends to incorporate crypto assets into mainstream investment assets.

How high can ETH rise in the short term?

From a technical and capital perspective, ETH's performance is amazing! As soon as the news broke, the price of ETH skyrocketed from $3650 to $3820, and the market shows that major funds are buying crazily. If this policy is successfully implemented, the first target price for ETH in the short term is expected to reach $4000 - $4200 (this is the previous resistance level). Once it successfully breaks through, $4000 will no longer be an unreachable dream! However, it is important to note that during the news hype, there may be profit-taking sell-offs, leading to a price drop. But as long as it does not fall below $3600 during the pullback, it presents an excellent opportunity to increase positions.

Three key factors for future market development

- Policy implementation speed: If Trump signs quickly, ETH is likely to experience a "rocket-like" rise; if it is delayed until September, the market enthusiasm is bound to cool down.
- Institutional Moves: Financial giants like BlackRock and Fidelity have already made their mark in the pension market. If they start buying ETH in large quantities, ETH is likely to enter a long-term bull market.
- Market linkage: When Bitcoin stabilizes at 120,000, ETH is likely to rise even more sharply; however, if the US stock market crashes, the crypto world must also be cautious, as the correlation between markets is very strong.

Retail Investor Guide

- Short-term investors: Pay close attention to the key level of $3600. If it breaks through with increased volume, you can consider buying. If the volume decreases, be patient and wait for a pullback.
- Long-term investors: The entry of pension funds is a significant benefit that can last up to 10 years. You must hold the spot assets firmly and definitely should not be shaken out by market fluctuations.

Risk Warning

Never invest all your funds into Crypto Assets! Currently, regulatory details are not yet clear, so be wary of the market trick of "buying expectations and selling facts" to prevent getting trapped by chasing highs.

Bold prediction

If ETH successfully breaks through $4200 in this wave of market trends, we will all witness this "pension bull market"! But remember, no matter how explosive the news is, the final investment decision should still be based on K-line trends. Caution in operations is necessary to achieve steady profits in the market. #SOL期货交易量创新高