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As the price of Ethereum (ETH) approaches the ATH of $4,878, the Crypto Assets market is at a critical moment. This potential breakthrough could trigger a series of market reactions that investors should closely follow.
Analysis shows that although there is a possibility of profit-taking, the scale may be limited. Recent data indicates that retail investors are continuing to sell off, while institutions and large holders are actively accumulating, which may provide strong support for the market. The Long-Term Holders Net Unrealized Profit/Loss (LTH-NUPL) indicator is in the "belief" zone, suggesting that there is still room for the market to rise. Meanwhile, the 30-day MVRV ratio is at 8.73%, indicating that Ethereum is currently not overvalued, which may reduce the incentive for large-scale selling.
In terms of technical indicators, the RSI has broken through 70, and the MACD shows a positive trend and has reached a new high for the year, indicating strong upward momentum. However, in the short term, the RSI and MACD have shown bearish divergence, which may suggest a brief pullback. It is worth noting that the fear and skepticism among retail traders in market sentiment may inversely drive prices up, as large holders may seize the opportunity to buy at low prices.
As the second largest Crypto Asset by market capitalization, Ethereum's price breaking through its ATH could have a positive impact on the entire Crypto Assets market. Often, the rise in Ethereum's price boosts overall market sentiment, driving up the prices of other mainstream coins and small-cap tokens. Currently, the total market capitalization of the global Crypto Assets market has reached a historic high of $4.13 trillion, and a breakthrough by Ethereum could further elevate this number, attracting more funds into the market.
In addition, the strong support from institutional funds is also worth noting. Recently, the Ethereum ETF recorded an inflow of $1 billion in a single day, reflecting institutional investors' confidence in Ethereum, which may offset some of the selling pressure from retail investors.
Overall, although there may be fluctuations in the short term, the potential impact of Ethereum breaking through the ATH is mainly positive. Investors should closely follow market dynamics, weigh risks and opportunities, and make informed investment decisions.