Recently, the cryptocurrency market received a major piece of news: there are rumors that the United States may allow 401(k) pension accounts to invest in cryptocurrencies. This news has triggered a strong reaction in the market, especially with a significant fluctuation in the price of Ethereum (ETH).

Previously, the account 401(k) was mainly used for investing in traditional financial assets, such as stocks and bonds. If this policy is ultimately implemented, it will mean that trillions of dollars in potential funds may flow into the cryptocurrency market, which will undoubtedly have a profound impact on the entire industry.

After the news broke, the price of Ethereum saw a significant increase in a short period, rapidly climbing from $3730 to $3860. Subsequently, the market also reported the possibility of appointing individuals favoring loose policies to the Federal Reserve Board, further pushing the price of ETH, which came close to its historical high of $3940.

However, we need to be cautious about this round of price increase. Although policy expectations can indeed drive market sentiment, the actual implementation of policies will still take time. Market reactions often precede actual events, so we may see a certain degree of speculative rise.

From a technical perspective, Ethereum is currently at a critical position. If it can stabilize above the $3850-$3880 range, the possibility of breaking through the $4000 barrier will greatly increase. However, we must also be cautious of potential pullbacks.

For investors, this is a time full of opportunities but also requires caution. It may be worth considering to buy in batches during pullbacks, but avoid investing all funds at once. If the price successfully breaks through historical highs, it may be appropriate to increase positions. However, regardless of the situation, it is important to remain rational and manage risks effectively.

In the long run, if pension funds really start to enter the encryption market on a large scale, this will be a sustained incremental capital dividend for several years. Therefore, core assets such as Bitcoin and Ethereum may become good choices for long-term investment.

Overall, the current market environment is full of uncertainties. Although there may be drastic fluctuations in the short term, the development prospects of the cryptocurrency market are still worth paying attention to in the medium to long term. Investors need to remain calm, closely monitor policy trends and market changes, and adjust their investment strategies in a timely manner.