#以太坊重返3800# The potential impact of the tariff agreement reached between the US and Europe on Ethereum and the crypto market.

Impact of news
1 Direct impact of the tariff agreement: The United States imposes a 15% tariff on goods imported from the EU, while the EU promises to increase investments in the US by $600 billion and purchase $750 billion worth of US energy, etc. This may lead to increased dollar liquidity, with some funds potentially flowing into the crypto market, providing financial support for cryptocurrencies such as Ethereum and driving up prices.
2 Potential Impact of Chip Tariff Policy: The U.S. Secretary of Commerce stated that the chip tariff policy will be determined within two weeks. Chips are a crucial part of the digital currency supply chain, and if the U.S. imposes tariffs on chips, it may affect the global chip supply chain, consequently impacting Ethereum's mining, exchanges, wallets, and other aspects, bringing uncertainty, but there is also a possibility that the negative news may have already been priced in, turning into positive outcomes.

Technical analysis
1 Short-term trend: After Ethereum breaks through $3800, if it can hold this price level, the next resistance level is at $3950, and if it breaks through, the psychological barrier of $4000 is likely to be conquered. If it fails to hold $3800, it may retrace to the support level of $3750.
2 Mid-term trend: From the perspective of the arc bottom pattern, the neckline level of 3375 USD has transformed into strong support, with the measured target range between 4200-4500 USD. If it can effectively break through 3920-4000 USD in the future and enter the "parabolic phase", it is expected to advance towards the mid-term target area.

fundamental factors
1 Pledge locking and supply scarcity: 30% of Ethereum is staked, with an annual inflation rate reduced to below 0.5%. 1.5 million new stakes were added in June and July, exacerbating supply scarcity and providing certain support for the price.
2 Institutional hoarding and ETF inflows: Institutions like BlackRock raised $3.57 billion through ETFs in a single month, holding 5.03 million Ether. The continuous hoarding by institutions and the influx of ETF funds have provided momentum for the rise in Ethereum prices.

Market sentiment and capital flow
1 Market Sentiment: After Ethereum broke through $3800, market sentiment was ignited, boosting the confidence of retail and institutional investors, which helps attract more funds into the market and drives prices up.
2 Fund Flow: The net inflow of Ethereum ETF in the past week reached $1.24 billion, hitting a three-month high. The entry rhythm of long-term funds perfectly aligns with the price consolidation, indicating that large funds are steadily building positions during the fluctuation period.

Overall, Ethereum has broken through $3800 after reaching a tariff agreement in Europe and the United States, with certain upward potential in the future and the possibility of hitting new highs. However, it also faces some uncertainties and risks. Investors should closely monitor market dynamics and make investment decisions based on their own risk tolerance.