Recently, the Ethereum (ETH) market has experienced a dramatic reversal, achieving an approximate 70% increase in just one month. Behind this astonishing surge lies complex market dynamics and significant macro factors.

The main driving forces come from two aspects: the strategic layout of large institutional investors and potential policy changes.

Firstly, the actions of the world's largest asset management company BlackRock are noteworthy. During the 30 days of widespread market pessimism and heightened short-selling sentiment, BlackRock's Ethereum spot ETF recorded net inflows on 29 of those days. This indicates that while retail investors and some institutions are panic selling, top capital represented by BlackRock is quietly accumulating positions, demonstrating confidence in the long-term prospects of the market.

At the same time, there are unconfirmed market rumors that a company named 'World Liberty Financial' has purchased $5 million worth of Ethereum. Although this information is yet to be verified, it undoubtedly injects additional optimism into the market.

However, what could really change the game are changes at the policy level. There are reports that the U.S. government is considering allowing 401(k) pension funds to invest in cryptocurrencies. Given that the total size of U.S. pensions is as high as $8.7 trillion, far exceeding the current $4 trillion total market cap of the cryptocurrency market, this policy, if implemented, would bring a huge potential influx of funds into the cryptocurrency market.

These factors combined have led to a significant rise in the Ethereum market. However, investors still need to be cautious and closely monitor market trends and policy developments. The high volatility of the cryptocurrency market means that risks and opportunities coexist, making rational analysis and prudent decision-making crucial.