Recently, the U.S. government announced a major policy allowing 401(k) retirement plans to directly invest in encryption currencies and other alternative assets. This decision involves approximately $9 trillion in funds and has garnered widespread attention in the market.

This is undoubtedly a significant positive news for Ethereum (ETH). The U.S. pension market is over $7 trillion, and even if only 1% of the funds flow into the encryption field, it will bring hundreds of billions of dollars in increments. As a leader in the public chain field, ETH is likely to become a key focus for institutional investors.

After the announcement, the price of ETH quickly rose from $3650 to $3850. Market analysts believe that if the policy is successfully implemented, ETH is expected to challenge the price range of $4000-4500 in the short term. At the same time, $3600 may become an important support level, and investors might consider entering the market around this position.

However, the future trend of ETH still has many uncertainties. The speed at which policies are implemented, the investment movements of large financial institutions such as BlackRock and Fidelity, as well as the overall performance of major markets like Bitcoin and U.S. stocks, will all impact the price of ETH. It is worth noting that in the past 30 days, the amount of ETH held by institutions has increased by 470,000, with BlackRock's holdings growing particularly significantly.

The market's reaction to significant news is often anticipatory. During the process from the announcement to the final implementation, the market has been continuously digesting various possibilities. This is what is commonly referred to in trading as 'buy the expectation, sell the fact.' What truly affects asset prices are often unknown factors and discrepancies in expectations, rather than the event itself.

For Bitcoin, the market's calm reaction to negative news may indicate that short-term pressure has eased. Next, investors should focus on new market drivers and potential turning points in sentiment. In the encryption market, maintaining vigilance and a flexible investment strategy is crucial.