The cryptocurrency market is going through a critical moment. After recently breaking through the price of 3889 USD, Ethereum (ETH) has slightly pulled back, but on-chain data reveals a more profound trend: large investors and institutions are joining forces to build a strong bullish position.

This trend is supported by data from multiple aspects. Among them, the most notable is the significant increase in the holdings of ETH spot ETFs launched by large asset management companies, with a weekly growth rate far exceeding that of Bitcoin-related products. Meanwhile, the large short positions accumulated in the range of $3600 to $3800 have become a potential breakout point for the market.

From a technical analysis perspective, Ethereum's current pullback may just be building momentum for the next round of upward movement. Although the price has retreated from its peak, the shrinking trading volume and changes in technical indicators suggest that bearish forces are weakening. The market's focus is on several key price levels: the 200-day moving average at $3489 and the 24-hour low at $3620 serve as important support, while $3736 is the key resistance level for a breakout.

More broadly, the active participation of institutional investors is reshaping the landscape of the cryptocurrency market. In July, the net inflow of ETH spot ETFs saw significant year-on-year growth, and the behavior of large asset management firms entering the market on a large scale through ETF channels signifies that cryptocurrency investment is gradually integrating into the mainstream financial system.

Behind these developments, the expectation that the Federal Reserve might lower interest rates is also playing a role, injecting additional momentum into the cryptocurrency market. However, investors still need to be cautious and closely monitor market changes and the evolution of the regulatory environment.

With the continued influx of institutional funds and changes in market structure, Ethereum and the entire encryption market may enter a new stage of development. However, investors should fully consider the risks and potential returns when making decisions.