Ten Core Reasons for Ethereum: Why ETH Will Experience Explosive Rise

As U.S. regulations ease, Wall Street institutions quietly position themselves, Vitalik has prepared multiple Ethereum L1 scaling solutions, and the Federal Reserve hints at imminent interest rate cuts— all major narratives converge on the same theme: Ethereum.

Regulatory easing, technological iteration, macro trends, and the "ultrasonic" currency mechanism are driving a four-pronged approach, paving an accelerated runway for the next 3-18 months.

ETF net inflows continue to hit new highs, the gas fees on the blockchain explorer are about to break 5 million, Ethereum has returned to the weekly MA200; the on-chain staking rate is approaching 30% and is still rising, from North America's Ethereum version of MicroStrategy SharpLink writing ETH onto its balance sheet, to Robinhood announcing the availability of Ethereum L2 trading of US stocks in Europe, and finally to Hong Kong accepting ETH as proof of immigration assets, the core value of Ethereum is becoming a global consensus.

Policy games, capital dynamics, protocol improvements, and the simultaneous roar of foundation reforms and iterations — there is only one key question left in the market: Are you ready?

The following 10 reasons will layer by layer analyze how ETH has risen from industry consensus to become a cross-cycle explosion engine.

1. The largest regulatory benefits and policies in history

The drastic shift in the U.S. regulatory stance has brought new optimism for Ethereum. The new chairman of the U.S. Securities and Exchange Commission (SEC), Paul Atkins, has expressed support for crypto innovation – a stark contrast to the era of Gary Gensler.

Atkins has withdrawn the proposals targeting decentralized finance and self-custody from the Gensler era, opting instead for an "innovation-first" strategy. In a recent roundtable, Atkins even emphasized that developers should not be punished for writing decentralized code.

This is a significant policy turnaround: the SEC under Gensler had viewed Ether as an "unregistered security" and investigated it. Now, under crypto-friendly leadership, Ethereum enjoys a clearer regulatory outlook. With decentralized finance gaining recognition at the highest levels—Atkins referred to self-custody as "a fundamental American value"—the threat of hostile regulation has noticeably diminished, greatly encouraging institutional participation in the Ethereum market.

In addition, recent legislative movements in the United States, especially the Senate's "GENIUS Act", mark a key turning point for the clarity of regulatory oversight over crypto dollar stablecoins.

These bills aim to establish a clear framework for payment stablecoin issuers, given that Ethereum serves as a major settlement layer for regulated stablecoins like USDC and PYUSD, as well as being one of the most important public chains for the largest stablecoin USDT, its adoption will receive strong support:

Comprehensive Stablecoin Framework

The "National Innovation Act for Guiding and Establishing U.S. Stablecoins" (GENIUS Act ) smoothly passed the Senate with bipartisan support in June 2025. It imposes strict standards on stablecoin issuers, requiring 100% cash or treasury reserves backing, monthly audit disclosures, and bankruptcy protection for token holders. Crucially, it allows banks and non-bank companies to issue stablecoins and accept regulation under a license.

Ethereum as a stablecoin infrastructure

By explicitly legalizing and regulating the issuance of stablecoins, these bills validate the dollar-backed tokens primarily existing on the Ethereum network. For example, Circle's USDC and PayPal's PYUSD are ERC-20 tokens on Ethereum, relying on Ethereum's security and global reach. The federal framework solidifies Ethereum's role as a settlement backbone.

Lawmakers themselves acknowledge that well-regulated stablecoins can "strengthen the position of the dollar as the world's reserve currency" while maintaining the competitiveness of the United States. This mission essentially leverages public networks like Ethereum to circulate USD stablecoins in DeFi and payments (.

)# DeFi and US Dollar Liquidity

The DeFi ecosystem of Ethereum, from lending protocols to decentralized exchanges ### DEX (, operates on the liquidity of stablecoins. By legitimizing stablecoins, the "GENIUS Act" effectively secures the foundation of DeFi. Participants can use assets like USDC with more confidence, without worrying about sudden setbacks or legal ambiguities.

This encourages institutional participation in DeFi), such as trading, lending, and payments using stablecoins(. In short, the legislation connects traditional finance) (TradFi() with DeFi: it invites banks, payment companies, and even tech companies to issue and use Ethereum-based stablecoins while providing safeguards) like KYC/AML, audits, and redemption rights( to reduce systemic and legal risks. The ultimate effect is the formation of a supportive policy environment that anchors Ethereum's role in the digital dollar economy.

Finally, another cryptocurrency legislation, the CLARITY Act )H.R. 3633(, has made considerable progress recently.

The "CLARITY Act" was first promoted by the House of Representatives. On June 13, 2025, the bill was passed by the Financial Services Committee and the Agriculture Committee with voting results of 32:19 and 47:6, respectively. The bill is currently in the rules committee process, waiting to be scheduled for a vote in the full House of Representatives.

The "CLARITY Act" eliminates the biggest uncertainty hanging over Ethereum in the United States: whether ETH is considered a security.

By clearly classifying ETH) and any sufficiently decentralized Layer-1 tokens ( as "digital commodities" regulated by the CFTC, the bill eliminates the possibility of retroactive enforcement by the SEC, creates a safe harbor for secondary trading, and clarifies when developers and validators do not fall under the definition of "broker." This combination significantly reduces the regulatory risk premium, paves the way for Wall Street products related to spot and staked ETH, and gives the green light for DeFi to continue innovating on the network.

In summary, given Ethereum's dominance in custodial stablecoins and DeFi, these multiple regulatory green lights greatly strengthen the prospects for mid-term adoption, trading rise, and Ethereum's integration into the traditional financial system.

) 2. "ETH version of MicroStrategy" leads institutional competition.

An increasing number of large capital players are viewing Ethereum as a strategic asset, a trend accelerated by a striking initiative from SharpLink Gaming. Recently, the publicly listed company SharpLink completed a milestone funding allocation: acquiring 176,000 ETH### for about $463 million(, making Ethereum its primary reserve asset, and overnight becoming the largest public holder of ETH in the world. Currently, over 95% of this asset has been staked to earn yields and enhance the security of the Ethereum network.

The CEO of SharpLink described this as a "landmark moment" and explicitly compared the strategy to a company's Bitcoin strategy, just with Ethereum instead. This bold financing is strongly supported by a well-known individual, who has taken on the role of SharpLink's new chairman. The individual stated on different occasions: "SharpLink's bold ETH strategy marks a milestone in institutional adoption of Ethereum," and pointed out that "ETH not only possesses Bitcoin-like store of value attributes, but also, due to its predictable scarcity and continuous yield, becomes a truly productive reserve asset; as Ethereum increasingly becomes the underlying infrastructure of the digital economy, ETH is also seen as a strategic investment towards the future financial architecture."

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The cryptocurrency treasury suddenly became a trend: SharpLink's success ) caused its stock price to soar by 400% after the announcement ( prompting peers to rush to imitate this strategy. The listed company Bitmine Immersion ) BMNR ( also recently announced it raised 250 million dollars specifically for purchasing ETH, positioning itself as "Ethereum treasury strategy company." Bitmine is led by a well-known figure, and its stock price skyrocketed over 3000% within a week after the announcement, attracting several top-tier institutional investments.

Meanwhile, observers report that several companies, including those in Europe, are also exploring reserve allocations focused on Ether. Although prior to this, some forward-thinking companies like BTCS Inc. had already begun holding ETH, the initiative by SharpLink represents a new height of mainstream adoption.

For Ethereum, the accumulation of ETH by an increasing number of corporate treasuries is undoubtedly a positive development – this locks in supply ), especially since most tokens will eventually be staked (, sending a signal of institutional confidence.

At the same time, institutions are also positioning themselves through funds: the first Ethereum futures ETF will be launched at the end of 2024, and the approval of a spot Ethereum ETF is also imminent, which could unleash billions of dollars in new demand. A well-known individual stated in an interview: "I believe launching an Ethereum ETF is valuable. This is just the first step towards asset tokenization, and I truly believe this is our future direction."

What can be seen is that Ethereum is increasingly regarded by listed companies and funds as a strategic investment and reserve asset, similar to the development trajectory of Bitcoin in the previous cycle.

) 3. Weekly technical indicators return to MA200

The Ethereum price chart shows multiple bullish technical signals, indicating that the trend may reverse upwards.

After a long period of stagnation, in May 2025, ETH has once again reached the weekly MA200 level - one of the most classic indicators of a bull market return.

From a technical perspective, the overall market structure of Ethereum has improved: a series of lower lows have gradually been replaced by higher lows and a breakout from the long-term descending channel.

From May to June, ETH has been above the 200-week moving average, with the 200-week average at about $2,500 having become a support "launch pad"—ETH is building a bottom above it, similar to the recovery phase of past cycles.

The momentum indicator confirms a positive structure: the weekly candlestick chart shows a long body and shallow shadow, indicating strong buying pressure with less selling pressure during pullbacks. The rising slope of key moving averages and the upward trend of the MACD indicator indicate an increase in upward momentum. In addition, we also see bullish chart patterns—several analysts point out that a potential bull flag pattern has appeared on the ETH chart, which, if confirmed, could target an upward move above 3000 USD in the medium term.

This indicates that traders are confident about ETH, believing that the downside risks have been effectively controlled and the path of least resistance is upward. Overall, Ethereum's technicals have stabilized above the 200-week moving average, with higher highs and higher lows, along with enhanced momentum, indicating that the asset is in the early stages of a significant bullish reversal, supporting a positive outlook for the next 3 to 18 months.

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) 4. Ethereum Pectra upgrade rapid advancement roadmap

The technical roadmap of Ethereum is steadily advancing, continuously enhancing its foundational value. The Pectra upgrade launching on May 7, 2025, namely the Prague + Electra hard fork (, marks a new phase for Ethereum, with 11 EIPs included that cover improvements in various aspects from smart wallets to scalability.

The most iconic changes include: raising the staking limit for a single validator from 32 ETH to 2048 ETH, and recalibrating fees to significantly increase Layer-2 throughput. These changes reduce costs, enhance L2 performance, accelerate the adoption of optimistic Rollups and zk-Rollups in the ecosystem, and clear obstacles for future L1 scalability.

At the same time, the Pectra upgrade supports account abstraction, such as gasless payments and batch transactions, laying the foundation for the large-scale adoption of stablecoins in the future, further widening the gap in user experience and flexibility compared to other public chains. As Ethereum core developer Tim Beiko summarized on April 24:"