The fluctuation of Ethereum prices around $3500 has sparked numerous speculations in the market. However, a deeper analysis suggests that this may not just be a simple price top but rather a key market restructuring area.

In this seemingly calm consolidation phase, market sentiment is complex and volatile. However, on-chain data reveals an interesting phenomenon: the holdings of large investors and long-term investors are steadily increasing. This trend indicates that major capital has not exited the market; instead, it is taking advantage of retail investors' hesitance to increase its own positions.

Multiple factors are driving Ethereum's transition into a broader store of value tool. The upcoming ETFs, an active blockchain development ecosystem, and the increasing usage rates of core protocols like Eigenlayer and Base are all paving the way for Ethereum to evolve from a purely technical asset into a reserve asset.

A common mistake made by market participants is exiting too early at the beginning of a trend, resulting in having to buy at a high price when the price peaks. The current market dynamics of Ethereum may be a reflection of this situation.

With the continuous development of blockchain technology and the expansion of application scenarios, the value proposition of Ethereum may further strengthen. Investors need to weigh short-term market fluctuations against long-term growth potential when making decisions to avoid missing out on potentially significant opportunities.