Friends who have been watching the market recently should have noticed that January 15th is destined to become this month's turning point. The story of ETH is about to enter a new chapter—two major positive signals hitting the market simultaneously, and on-chain data has long exposed the scheming of the big players.

First, let's talk about the first signal: Regulatory policies are really shifting

The Senate's vote on the compliance bill seems to aim at cracking down on false transactions, but in reality, it's paving the way for institutional funds. The mandatory reserve proof move directly hits the pain points of exchanges—platforms that have long operated behind closed doors will face a major reshuffle. On-chain changes best illustrate this: recently, centralized exchanges' ETH reserves have dropped by 12%, while the net inflow into staking contracts has surged. See, smart money is already in action—withdrawn from risk platforms and shifting toward more compliant and safer options. This is no coincidence; it's a matter of capital intuition.

The second signal is even more straightforward: a significant increase in capital

A leading institution's proposal to increase issuance from hundreds of millions to hundreds of billions of shares looks like dilution, but in fact, it's a scramble for funds. Once the vote passes, nearly ten times the capital ammunition will be directed toward ETH. What's most interesting is the behavior of those whale addresses on-chain—over the past 72 hours, some top addresses have quietly bought tens of thousands of ETH, with over 60% completed OTC. This clearly aims to avoid market volatility; such tactics are only possible with institutional-level funds. Retail investors simply can't execute such sophisticated layouts.

What will happen when these two events combine?

In simple terms, it's a perfect match of "policy support + capital ignition." If the bill passes, ETH, as a regulation-friendly asset, will receive institutional backing, opening the floodgates for incremental funds. Meanwhile, the increase in capital directly creates buying pressure, coupled with the recent ETF market optimism, making it possible for ETH to break through key resistance levels against Bitcoin.

The market always explodes amid doubts. Last year, when everyone was mocking regulatory bearishness, the candlestick charts were already answering the question. This time, on-chain data and macro logic finally align—it's clear now who can withstand volatility and hold onto their chips. Don't stay on the ground when the rocket takes off; that would be a huge loss.