Ethereum is approaching critical resistance levels, fueled by significant institutional demand linked to a specific tax-efficient investment strategy.
The bullish momentum stems heavily from institutions utilizing IRS Code 351 provisions. This regulation allows long-term Ethereum holders to exchange their cryptocurrency holdings for shares in a corporate treasury without triggering immediate capital gains taxes.
By leveraging IRS Code 351, mirroring strategies previously employed for Bitcoin by companies like MicroStrategy, institutional investors can gain exposure to Ethereum through traditional equity structures. This non-taxable exchange significantly increases market demand and upward price pressure.
The key technical resistance level is identified at $4,100. Should this resistance be convincingly breached, analysts suggest the price could target $4,370. A sustained move beyond that could potentially propel Ethereum towards new all-time highs, reaching levels near $4,800 to $5,000.
This confluence of tax-efficient investment pathways and significant institutional influx is the primary catalyst behind Ethereum’s current strong market positioning and its potential to break out significantly higher.