Ethereum Price Outlook: Network Growth Momentum Breaks Through Thanks to the Progress of the GENIUS Bill

Ethereum (ETH) is currently fluctuating around the $2,500 mark on Friday, despite the impressive increase in the number of new wallets created over the past month. This development comes against the backdrop of the digital asset sector making significant legal strides, after the GENIUS Bill – short for "Guidance and Establishment of National Innovation for Stablecoins in America" – was officially passed by the Senate.

New Ethereum wallet addresses surge thanks to progress in the stablecoin bill

The number of Ethereum addresses (ETH) created each week has seen an impressive increase over the past month, nearly growing by a third compared to the same period last year, according to data from Santiment.

"Currently, around 800,000 to 1 million new ETH addresses are created each week, while this figure is only about two-thirds of what it was at the same time last year," analysts from Santiment shared in a post on platform X on Wednesday.

Notably, the emergence of new wallets coincides with recent positive developments in the Ethereum ecosystem, particularly the U.S. Senate's passing of the GENIUS Bill – an important piece of legislation regarding stablecoin – with strong bipartisan support, paving the way for a clearer legal framework in the digital asset space.

The development of the ETH network | Source: SantimentPresident Donald Trump has urged Republican House lawmakers to act "as fast as lightning" to push the GENIUS bill – which has just been passed by the Senate – straight to his desk. He emphasized that Congress needs to pass this bill "as soon as possible," without delay or adjustments to any provisions.

"This is the essence of American intelligence. We will show the world how to WIN in the era of digital assets in an unprecedented way," Trump declared on the social media platform Truth Social on Wednesday.

The day before, the Senate approved the GENIUS bill with an overwhelming majority: 68 votes in favor – 30 against, bringing the legal framework for stablecoin closer to the finish line than ever before. The House is expected to soon bring the bill to discussion, as investors hope it will be passed before the August break. If that happens, GENIUS will become the first law in America to regulate the cryptocurrency sector, marking a major turning point in the efforts to build a legal corridor for digital assets.

Currently, a number of large corporations and financial institutions such as Apple, Amazon, JPMorgan, and Morgan Stanley are actively seeking solutions to apply stablecoin in their business operations – demonstrating the increasing potential and influence of this technology in the global economy.

Ethereum benefits from growing interest in digital asset market structure

The lively debates among lawmakers surrounding the CLARITY Act – a bill aimed at establishing a comprehensive legal framework for the digital asset market – are fueling growing interest in Ethereum. As the platform that hosts a majority of cryptocurrency activity outside of Bitcoin, Ethereum is becoming the focal point in the evolving landscape of the market.

According to data from DefiLlama, the total market capitalization of stablecoins on Ethereum has nearly reached 126 billion USD – a clear sign of steady growth in recent weeks. Ethereum currently accounts for 50.2% of the market share compared to other blockchains, reinforcing its leading position in the decentralized finance ecosystem.

The total market capitalization of stablecoins on Ethereum | Source: DefiLlama "This is the tipping point – when blockchain is no longer just an emerging technology, but is gradually becoming the underlying infrastructure for the world," Vivek Raman, co-founder of Ethrealize, shared in a recent interview. "As blockchain becomes the foundation for fields such as finance, social media, logistics, or supply chains, Ethereum will play a role similar to that of the Internet today."

Raman believes that Ethereum has been undervalued for a long time due to legal ambiguities. "Now that the legal barriers are gradually being removed, ETH will enter a new valuation cycle – from a limited technology story to a store of value and a global infrastructure platform, similar to the role of oil in the traditional economy," he emphasized.

ETH needs to hold above the support line of the channel to avoid a sharp decline.

In the past 24 hours, the Ethereum futures market has witnessed a wave of liquidations worth 16.59 million USD, according to data from Coinglass. Specifically, Long positions were liquidated for 7.77 million USD, while Shorts accounted for 8.82 million USD – reflecting a clear tug-of-war between the bulls and the bears.

Currently, ETH is still struggling to break through the simple moving average (SMA) of 200 days, while trying to maintain the important support level at $2,450 – which coincides with the 38.2% Fibonacci retracement level. This support threshold is further reinforced by the convergence of the 50-day SMA and the (EMA) exponential moving average, located near the lower boundary of a key price channel.

! ETH/USDT Daily Chart | Source: TradingViewHowever, in the context of continued decline in trading volume, selling pressure could push ETH out of the support zone if it fails to hold its defensive stance. If the price holds the support line of the channel and breaks through the 200-day SMA, ETH will have a chance to head towards the resistance zone located at the upper edge of this price channel. Conversely, if it breaks the current support level, the decline could drag ETH back deeper into the $2,260–$2,110 zone, which is supported by the 100-day SMA.

In addition, both the RSI and Stochastic indicators are moving sideways below the neutral threshold, indicating that the bears still hold a slight advantage in the short term.

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