Ethereum (ETH) breaking through the $4000 mark should have been a moment of celebration for the cryptocurrency market, yet the market atmosphere is surprisingly dull. Most investors are hesitant, unwilling to rashly chase the price, nor are they easily shorting, while other cryptocurrencies are exhibiting a collective wait-and-see attitude. What kind of market logic is hidden behind this abnormal phenomenon?

From a technical perspective, the recent surge in ETH appears to be quite strong: the weekly MACD indicator has broken through the zero line, and the daily OBV shows stable capital inflow, indicating a positive overall trend. However, strangely, the market reaction has been unusually tepid, with low trading volume and limited participation from retail investors. The reasons for this phenomenon may include: ETH's previous unsuccessful attempts to break through the $4000 mark, leaving a psychological shadow on investors; at the same time, there seem to be obvious signs of large capital manipulation in the market, with frequent wash trading and chip competition; funds from other cryptocurrencies have been attracted to ETH, resulting in their underperformance, further affecting the overall market sentiment.

Generally, the rise of ETH will drive other cryptocurrencies to follow suit, but this time it has become an exception. The main reasons may be: ETH has attracted a large amount of funds, leading to insufficient liquidity for other coins; at the same time, Bitcoin's performance is weak, coupled with the uncertainty of the regulatory environment, making institutional investors hesitant to easily allocate to other cryptocurrencies. However, historical experience shows that whenever ETH stabilizes at key price levels, other cryptocurrencies often experience significant gains. Whether this pattern will hold true in this market cycle is worth our close attention.

The future market direction will mainly depend on two factors: first, whether ETH can firmly stay above $4000 and whether the trading volume continues to increase; second, whether Bitcoin can remain stable and avoid dragging down the overall market. If these two conditions are met, other cryptocurrencies may experience a strong rally.

For ordinary investors, it is important to be cautious of the risk of a pullback in the short term, as ETH may drop to the support level of 3800-3900 USD; in the medium term, pay attention to changes in trading volume. If capital inflow remains stable, the overall trend is positive; in the long term, consider allocating some quality small-cap encryption currencies, but be careful to control positions and avoid chasing the price.

The cryptocurrency market is always full of surprises; each seemingly calm period may be brewing greater changes. Does ETH breaking through $4000 signify the start of a new bull market? The answer will gradually unfold in the coming weeks. Regardless, maintaining rationality and vigilance, and implementing thorough risk management, is key to succeeding in this market filled with opportunities and challenges.