Ethereum (ETH) has performed impressively recently, surging to $4,330 in the early hours of August 10, reaching a new high for the past two years. Although it has slightly retreated since then, it remains at a high level of around $4,225. In the long term, the rise of ETH is even more astonishing, with a 25% increase on the weekly chart, a 43.66% climb on the monthly chart, and a year-to-date return of 61.39%. It is only 15.21% away from its all-time high of $4,868.

The market is experiencing intense competition between bulls and bears. From a technical perspective, both the monthly and weekly indicators show strong buy signals, which undoubtedly provide strong support for the bulls. However, there is some uncertainty at the daily level, with oscillators showing neutral to slightly bearish signals. In the short term, ETH has experienced significant volatility, with a 24-hour volatility of up to 4.16%, which may suggest that the market is undergoing a round of liquidation.

At the same time, a significant piece of news has drawn widespread attention in the market. According to reports, the U.S. 401(k) retirement plan is considering easing investment restrictions, potentially allowing for allocations to alternative assets including cryptocurrencies. If this massive pool of funds, amounting to $12.5 trillion, does indeed enter the cryptocurrency market, it will have a profound impact on the entire industry. As the second-largest cryptocurrency by market capitalization, only after Bitcoin, Ether is likely to be the main beneficiary of this potential inflow of funds.

Looking back at the development of Ethereum, technological upgrades are often the key factor driving price rises. In 2021, the main driving force behind ETH breaking the historical high of $4868 came from the London hard fork upgrade. Currently, the market is generally focused on the upgrade process of ETH 2.0, which could become an important catalyst for a new bull market.

However, investors also need to remain cautious. The cryptocurrency market is highly volatile; although the long-term outlook is promising, it may still face significant adjustments in the short term. When making investment decisions, it is essential to comprehensively consider market risks and allocate assets appropriately.