Ten Core Bullish Reasons for Ethereum

When the U.S. regulators give the green light, Wall Street institutions quietly position themselves, Vitalik accumulates multiple L1 scaling solutions, and the Federal Reserve hints at an imminent interest rate cut, all grand narratives converge on the same main line: Ethereum.

Regulatory thaw, technological iteration, macro trends, and deflation mechanisms drive four rounds, paving an accelerated runway for the next 3-18 months. ETF net inflows continue to set new records, on-chain gas fees are about to break 5 million, Ethereum is returning to the weekly MA200; the staking rate is approaching 30% and still climbing, from North American ETH version MicroStrategy incorporating ETH into its balance sheet, to Europe using ETH for trading on US stocks via L2, and to Hong Kong accepting ETH as proof of immigration assets, the core value of Ethereum is becoming a global consensus.

Policies, capital, and technological innovation are advancing simultaneously, and there is only one key question left in the market: are you ready?

The following top 10 reasons will analyze how ETH has transitioned from industry consensus to a cross-cycle explosive engine.

1. The Largest Regulatory Favor and Policy Issuance in History

The drastic shift in the U.S. regulatory stance has brought optimistic expectations for Ethereum. The new SEC chairman Paul Atkins supports crypto innovation, in stark contrast to the era of Gary Gensler.

Atkins withdrew the proposal regarding DeFi and self-custody, opting instead for an "innovation-first" strategy. He emphasized that developers should not be punished for writing decentralized code. This is a significant policy shift: the SEC under Gensler had previously viewed ETH as an "unregistered security" and conducted investigations. Now, under leadership supportive of crypto, Ethereum enjoys a clearer regulatory outlook. As DeFi gains recognition, the hostile regulatory threats have diminished, greatly encouraging institutional participation.

Moreover, the U.S. "GENIUS Act" marks a critical turning point in the regulation of stablecoins. This act establishes a clear framework for stablecoin issuers, and given that Ethereum serves as the primary settlement layer for regulated stablecoins like USDC and PYUSD, its adoption will receive strong momentum:

Comprehensive Stablecoin Framework

The "GENIUS Act" was passed in June 2025 with bipartisan support. It mandates 100% cash or treasury bond reserves, monthly audit disclosures, and bankruptcy protection for token holders. Crucially, it allows banks and non-bank companies to issue stablecoins and accept regulation under license.

Ethereum as a stablecoin infrastructure

By legalizing and regulating stablecoins, these bills validate dollar tokens primarily existing on the Ethereum network. USDC and PYUSD are Ethereum ERC-20 tokens that rely on its security and global coverage. The federal framework consolidates Ethereum's role as the settlement backbone.

Lawmakers acknowledge that well-regulated stablecoins can "enhance the position of the dollar as the world's reserve currency" while maintaining U.S. competitiveness. This mission essentially leverages public networks like Ethereum.

DeFi and US dollar liquidity

The DeFi ecosystem of Ethereum 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 greater confidence, without worrying about sudden crackdowns or legal ambiguity.

This encourages institutional participation in DeFi. The legislation connects traditional finance with DeFi: it invites banks, payment companies, and even tech companies to issue and use Ethereum-based stablecoins, while providing safeguards to reduce risks. The ultimate effect is to create a supportive policy environment that anchors Ethereum's role in the digital dollar economy.

Finally, the CLARITY Act has made smooth progress recently. The bill was passed with a vote of 32:19 in the Financial Services Committee and 47:6 in the Agriculture Committee in June 2025. It is currently in the Rules Committee process, waiting to be scheduled for a vote in the full House.

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

By explicitly classifying ETH as a "digital commodity," the bill eliminates the possibility of retrospective 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 significantly reduces the regulatory risk premium, paves the way for Wall Street products related to spot and staked Ether, and opens the green light for continued innovation in DeFi.

In summary, given Ethereum's dominance in the custody of stablecoins and DeFi, these regulatory green lights significantly bolster the prospects for mid-term adoption, trading growth, and Ethereum's integration into the traditional financial system.

2. "ETH version of MicroStrategy" leads institutions to compete with each other

An increasing number of large capital players view Ethereum as a strategic asset, and SharpLink Gaming's actions have accelerated this trend. The company recently acquired 176,000 ETH( for approximately $463 million), positioning Ethereum as its primary reserve asset, making it the largest public holder of ETH in the world. Currently, over 95% has been staked to earn yields and enhance network security.

SharpLink CEO stated that this is a "landmark moment", clearly comparing the strategy to MicroStrategy's Bitcoin strategy. ConsenSys founder Joseph Lubin strongly supports it and serves as the new chairman of SharpLink. Lubin stated: "SharpLink's bold ETH strategy marks a milestone in institutional adoption of Ethereum", and pointed out that "ETH not only possesses Bitcoin-like value storage attributes, but also, due to its predictable scarcity and continuous yield, becomes a truly productive reserve asset; as Ethereum increasingly becomes the underlying architecture of the digital economy, ETH is also seen as a strategic investment towards the future financial architecture."

Cryptocurrency treasury suddenly becomes a trend: SharpLink's success ( stock price soared by 400% ) prompting peers to follow suit. Bitmine Immersion announced it raised $250 million to purchase Ether, positioning itself as an "Ethereum treasury strategy company". Led by Fundstrat co-founder Tom Lee, its stock price skyrocketed over 3000% within a week, attracting multiple top-tier institutional investments.

At the same time, many companies in Europe are also exploring ETH-focused reserve allocations. For Ethereum, the accumulation of ETH by more and more corporate treasuries is undoubtedly positive – it locks in supply and conveys a signal of institutional confidence.

Institutions are also positioning through funds: the first Ethereum futures ETF will launch at the end of 2024, and the approval of the spot Ethereum ETF is imminent, which may unleash billions of dollars in new demand. BlackRock CEO Larry Fink stated: "I believe that launching an Ethereum ETF is valuable. This is just the first step towards asset tokenization, and I truly believe this is our future direction."

Ethereum is increasingly being viewed 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 Level Technical Indicators Return to MA200

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

After a long period of stagnation, in May 2025, ETH has once again risen above the weekly MA200 - this is one of the classic indicators of a bullish market return.

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

From May to June, ETH was above the 200-week moving average, with the 200-week average ( around $2,500 ) acting as a support "launchpad"—ETH is building a base above it, similar to the recovery phase of past cycles.

Momentum indicators confirm a positive structure: The weekly candlestick chart shows long bodies and shallow shadows, indicating strong buying pressure with less selling pressure during pullbacks. The rising slope of key moving averages and the recovery trend of the MACD indicator show that upward momentum is strengthening. In addition, a bullish chart pattern has emerged - multiple analysts have pointed out the potential bull flag pattern on the ETH chart, which, if confirmed, could target a rise above $3000 in the medium term.

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

4. Ethereum Pectra Upgrade Fast-Track Roadmap

The technical roadmap of Ethereum is progressing steadily, continuously enhancing its fundamental value. The Pectra upgrade, launched on May 7, 2025, marks a new phase for Ethereum, encompassing 11 EIPs that cover various improvements from smart wallets to scalability.

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

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 and further widening the gap in user experience and flexibility compared to other public chains. As Ethereum core developer Tim Beiko summarized: "One of the highlights of Pectra is EIP-7702, which enables use cases like batch transactions, gas payment on behalf, and social recovery without the need to migrate assets."

At the mainnet level, Ethereum is gradually increasing the Gas Limit, from the initial 15 million to 36 million, with further increases expected to reach 60 million in the future, resulting in a 2-4x increase in the number of transactions that Ethereum L1 can handle per second, reaching 60 TPS. It can be predicted that after multiple expansions, Ethereum is expected to break the three-digit TPS. Ethereum researcher Dankrad Feist even proposed: "We have a blueprint to increase the Gas Limit by 100 times within four years, which theoretically could elevate Ethereum's TPS to 2,000."

At the same time, Ethereum is actively promoting the integration of zero knowledge as part of the "Surge" roadmap phase. Upgrades like Pectra( and the upcoming Fusaka) lay the foundation for comprehensive ETH ZKification and ZK version verification light clients.

Clearly, Ethereum's core protocol is rapidly evolving, keeping it technically ahead of its competitors.

5. Interest rate cuts are imminent and the macroeconomic environment is favorable

In the coming months, changes in the macroeconomic environment will be favorable for Ethereum. After a year of high interest rates, the market expects the Federal Reserve to shift towards interest rate cuts, which could bring benchmark yields below ETH staking returns.

According to the CME Fed Watch forecast, the federal funds rate is expected to drop to 3.25% or lower by mid-2026. At the same time, the on-chain staking yield for Ethereum ( is currently around 3.5% annualized, and it is expected to rise due to increased network activity and transaction fees.

This trend converges to produce a "double shock effect": the traditional risk-free yield is declining, while the local yield of Ethereum is rising, which may turn the spread between ETH staking and government bond yields into a positive value.

If Ethereum staking can provide returns significantly higher than US Treasury bonds or savings accounts, it will enhance the appeal of ETH as a high-yield and highly liquid asset. Staking not only brings steady returns, but ETH also has the potential to rise, which is a highly attractive combination for investors who find it difficult to earn returns elsewhere.

In addition, a more accommodative Federal Reserve policy ) and an improved inflation outlook ( tend to weaken the dollar, which historically benefits all crypto assets.

Such a loose monetary policy macro trend is very beneficial for Ether within the time frame of the next 3 to 18 months.

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6. Staking: On-chain Staking and ETF Staking Working Together

Ethereum core researcher Justin Drake pointed out: "Ethereum staking has become a network security and economic model.