Recently, the Ethereum (ETH) market has reached a critical turning point, presenting a situation of both opportunities and challenges.

First, the United States has passed a new law aimed at regulating the stablecoin market, which indirectly injects new vitality into the Ethereum ecosystem. Meanwhile, institutional investors have shown unprecedented interest in Ethereum. In the past week, nine major institutions, including BlackRock, have invested up to $2.18 billion in Ethereum ETFs, with BlackRock alone contributing $1.76 billion. Even the founder of traditional payment giant PayPal has personally participated in the purchase of ETH.

It is worth noting that financial giants like JPMorgan and Robinhood have also begun to transfer most of their tokenization project operations to the Ethereum network, which undoubtedly greatly expands the application scenarios of Ethereum.

However, from a technical perspective, the recent daily price action shows that the upward momentum has weakened, and there are signs of overbought conditions. Nevertheless, from a weekly level, the long-term upward trend remains strong. Currently, $3500 seems to have formed a solid support level, while $3800-$4000 has become the key resistance level for a breakout.

This period can be seen as an intersection of policy dividends and technological adjustments. The daily level correction may provide investors with a potential entry opportunity. As long as the support level of $3500 is not broken, there is still room for future price increases.

Investors should closely monitor the support level at $3500 and the resistance level at $3800. If these key positions can be突破, it may signal the beginning of a new round of market activity. However, investors should also keep in mind that the cryptocurrency market carries high risks, and investment decisions should be made with caution.