Recently, the market movement of Ethereum has indeed been quite fierce. What is the driving force behind it? I have combined on-chain data and market analysis to summarize three core signals.

First, let's look at the funding situation. In the past three weeks, several major players have quietly accumulated nearly 1 million ETH, which amounts to tens of billions of dollars. Such operations are clearly beyond the reach of retail investors, indicating the presence of smart money positioning itself in advance. Meanwhile, the inflow of funds into spot ETFs has also been quite aggressive, with a new high in net inflows for a single day. This shows that traditional funds are starting to pay attention to Ethereum again, and we cannot ignore the momentum of compliant capital entering the market.

Secondly, there is a breakthrough on the technical side. Previously, ETH was oscillating within a certain range, but now it has finally broken through the key resistance level, and there has been an increase in volume. This is not a false breakout—price has firmly held above the 50-week moving average, which is a signal that experienced traders can understand. Historical trends tell us that such breakouts often mark the beginning of a new market wave. However, we must also be cautious; the key is whether it can maintain this position.

The third aspect is that the ecological fundamentals are improving. The number of on-chain active addresses has clearly increased, indicating that there are indeed people using this chain, and it is not just pure speculation. More importantly, the inventory of ETH on exchanges has dropped to a historical low, with a large amount of ETH being transferred to staking or locked in the Layer2 ecosystem, leading to a tightening circulation. This supply-side pressure will ultimately be reflected in the price.

So what is the next course of action? My personal opinion is as follows:

In the short term (the next few weeks), Ethereum needs to break through the 3000-3100 hurdle first. If it can stabilize at this price, the next psychological level is around 3300. But don't let your guard down—always keep an eye on the support level. If it falls below 2880-2900, it might have to pull back to a deeper position. So at this stage, it's still better to be cautious and not go all in.

Looking ahead to the medium term (a time frame of one to two months), I maintain a relatively cautious attitude. The market always has uncertainties; although current signals point in a positive direction, no one can say for sure whether there will be another pullback before it gets dark. Good risk management and taking small positions to test the waters is much more reliable than blindly being bullish.