Last night, the cryptocurrency market experienced a strong surge, with Ethereum (ETH) standing out particularly, successfully breaking through the long-term resistance level of $4380. Multiple factors are driving this wave of growth.

First, the Producer Price Index (PPI) data from the United States was released, indicating that inflationary pressures may be easing. This news immediately sparked speculation in the market about the Federal Reserve's potential interest rate cuts in the future, which in turn stimulated demand for risk assets. Investors generally believe that once the rate-cutting cycle begins, more funds will flow into the high-risk, high-reward cryptocurrency market.

However, having only positive news is not enough; the technical aspects of the market also play a crucial role. The breakthrough of ETH above the key resistance level of 4380 USD is significant. Previously, this price level has repeatedly acted as a ceiling for increases, with strong selling pressure every time it approached. This time, with the help of external positive news, ETH not only broke through this level but also saw a significant increase in trading volume, indicating that this is an effective breakout and reflecting a substantial shift in market sentiment.

Other mainstream cryptocurrencies such as Bitcoin (BTC) also followed in the footsteps of ETH, generally rising, indicating an improvement in overall market sentiment. This widespread increase further reinforces the bullish-dominated market pattern.

Looking ahead, market participants need to closely monitor several key factors:
1. The subsequent policy direction of the Federal Reserve, especially decisions related to interest rates.
2. Price activity near $4380, observe whether it can effectively stabilize at this new support level.
3. The fund flow of institutional investors often indicates medium to long-term trends.
4. Other macroeconomic data, such as employment reports, GDP growth, etc., may affect market sentiment.

Although market sentiment is high in the short term, investors should remain cautious. The high volatility of the cryptocurrency market means that conditions can change rapidly. It is recommended that investors carefully assess risks and develop appropriate risk management strategies before making any investment decisions.