Analysis of Ethereum Regulation and Market Status

1. Crypto Regulation Remains Friendly

The United States is implementing more systematic and adaptive regulation on crypto assets and markets. The regulatory environment is becoming clearer and more lenient, encouraging blockchain innovation to attract more capital into the crypto space.

Key developments include:

• The new SEC chair supports simplifying the issuance, custody, and trading processes of crypto assets.
• The "CLARITY Act" clarifies the classification standards for tokens.
• The "Genius Act" provides a regulatory framework for stablecoins.
• DeFi may receive an "innovation exemption"
• Ethereum ETF staking approval expectations increase

These measures will bring more funds and institutional participation to the crypto market.

2. Ethereum Remains the Primary On-Chain Financial Infrastructure

Ethereum maintains a leading position in the following areas:

• Stablecoin distribution: about 50% of stablecoins circulate on Ethereum
• DeFi Scale: Ethereum has the largest DeFi ecosystem TVL
• RWA Market: Major RWA projects such as BUIDL Fund choose Ethereum
• Institution Adoption: Morgan Stanley's Kinexys platform is based on Ethereum technology.

With the increase of stablecoins and institutional funds, the Ethereum ecosystem is expected to usher in a new round of growth.

3. Market data shows upward momentum

• Contract positions hit a new high, market liquidity is ample
• Short selling sentiment remains, but has not yet reached extremes.
• Continuous net inflow of ETH spot ETF
• Bullish sentiment in the options market is rising
• There is a significant risk of short liquidations around $3000.

Overall, ETH is expected to break through $14,000 in the medium to long term. Factors such as a friendly regulatory environment, the growth of stablecoins, and institutional participation will support the continued rise of ETH.