In the early hours of today, the crypto assets market once again staged a thrilling scene. The price of Ethereum (ETH) suddenly fell sharply, dropping to a low of $3526, causing the contract market to get liquidated for $3.86 million in an instant. This unexpected event triggered panic in the market.

However, just as retail investors were frantically selling, positive signals came from the US-Europe trade relations. The US announced a reduction in the original 30% tariff to 15-20%, which immediately triggered a market rebound. The price of ETH subsequently surged significantly, increasing by 120 dollars, and is currently stabilizing around 3640 dollars. Both bulls and bears are fiercely battling at the 3700 dollar mark.

It is worth noting that this rebound is not solely driven by retail investors. Data shows that institutional investors have purchased 2.83 million ETH over the past two months, with a total investment amount reaching 5 billion USD. Meanwhile, the increase in the issuance of ETH is only 88,000 coins, resulting in an astonishing supply-demand gap of 32 times.

In addition, a large investor with the code "WLFI" recently purchased 5,608 ETH at an average price of $3,469, with a total investment amount of $19.46 million. Currently, the investment has achieved approximately $1.45 million in floating profits.

Market analysts pointed out that the stablecoin market has seen a new inflow of 2.7 billion USD, and this capital is likely to flow into the crypto assets market, with ETH being regarded as the preferred target.

From a technical perspective, the sharp drop this morning caused the ETH price to fall below the middle band of the Bollinger Bands, and the KDJ indicator also showed a death cross, which triggered more panic among investors. However, the OBV (On-Balance Volume) indicator shows that the money line is rising quietly, which may indicate that large funds are taking the opportunity to accumulate at low prices.

Currently, whether the ETH price can return to $3700 has become the focus of the market. Investors need to pay close attention to market trends and operate cautiously to respond to potential drastic fluctuations.