Recently, a striking phenomenon has emerged in the cryptocurrency market: the exchange rate of ETH to BTC has climbed to 0.3165, reaching a new high since the end of January this year. Achieving this milestone took a full six months, during which ETH supporters experienced quite a test.

It is worth noting that the recent surge of ETH is accompanied by a significant increase in trading volume, indicating high market participation. For most investors, this rally provides an opportunity to break even, with only a few investors who bought in the 3800-4000 range still not having recouped their losses.

However, we have to ponder a question: What is the motivation behind institutional investors buying a large amount of ETH? Clearly, like ordinary investors, their goal is also to profit. So, where do these potential profits come from?

One possibility is from the opposing side, while another may come from retail investors buying at a high point, completing the transfer of chips between institutions. Signs of panic buying have already appeared in the current market, and we need to be cautious as institutions may have a tendency to offload.

Despite the strong market momentum, investors should remain cautious. If choosing to go long, it is essential to set a stop-loss point and remain flexible. Currently, the daily chart of ETH has not yet broken below the 5-day moving average, indicating a strong trend, but once a crash occurs, prices may drop rapidly.

In such a market environment, investors need to constantly pay attention to market trends, manage risks well, and avoid buying at high prices. At the same time, they should be cautious of the risks that may arise from overly heated market sentiment.