The Rise of Ethereum: Ten Core Reasons Leading the New Bull Run

As the US regulators ease their stance, Wall Street institutions quietly position themselves, Vitalik accumulates multiple L1 scaling solutions, and the Federal Reserve hints at an impending shift toward interest rate cuts------ all significant narratives converge on the same main line: Ethereum.

Regulatory thaw, technological iteration, macro trends, and the "ultrasonic" currency mechanism are driving multiple rounds of acceleration, paving the way for the future 3-18 months.

The ETF net inflow curve continues to hit new highs, the gas fee on the block explorer is about to break 5 million, Ethereum has returned to the weekly MA200; the on-chain staking rate is approaching 30% and is still climbing. From North America's Ethereum version of MicroStrategy writing ETH into its balance sheet, to a trading platform announcing that the European region can use Ethereum L2 to trade US stocks on-chain, to Hong Kong announcing the acceptance of ETH as proof of assets for immigration, the core value of Ethereum is becoming a global consensus.

Political games, capital momentum, protocol improvements, and iterative reforms of the foundation are all roaring in sync------The market has only one key question left: Are you ready?

The following 10 reasons will break down 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—this is in stark contrast to the era of Gary Gensler.

Atkins has withdrawn the proposals regarding decentralized finance and self-custody from the Gensler era, opting instead for an "innovation first" strategy.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

This is a significant policy turnaround: The SEC under Gensler had regarded Ether as "unregistered securities" and conducted investigations into 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 significantly diminished, greatly encouraging institutional participation in the Ethereum market.

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

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

Comprehensive Stablecoin Framework

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

Ethereum as a stablecoin infrastructure

By explicitly legalizing and regulating the issuance of stablecoins, these bills validate 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 the security and global reach of Ethereum. The federal framework reinforces 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 U.S. competitiveness. This mission essentially leverages public networks like Ethereum (where dollar stablecoins circulate in DeFi and payments).

DeFi and US Dollar Liquidity

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

This encourages institutional participation in DeFi (for example, using stablecoins for trading, lending, and payments). 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 (KYC/AML, audits, 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 been making quite smooth progress recently.

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

The "CLARITY Act" has eliminated 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 SEC retroactive enforcement, creates a safe harbor for secondary trading, and clarifies when developers and validators do not qualify as "brokers." This combination significantly reduces the regulatory risk premium, paves the way for Wall Street products related to spot and staked ETH, and greenlights DeFi to continue innovating on the network.

In summary, given Ethereum's dominance in the custody of stablecoins and DeFi, these multiple regulatory green lights greatly enhance the prospects for mid-term adoption, trading growth, 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 that has been accelerated by a remarkable initiative from SharpLink Gaming. The publicly listed trading platform SharpLink recently completed a milestone capital allocation: acquiring 176,000 ETH (approximately $463 million), positioning Ethereum as 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 returns and enhance the security of the Ethereum network.

SharpLink's CEO called this a "landmark moment" and explicitly compared the strategy to a certain company's Bitcoin strategy, only with Ethereum instead. This bold financing is strongly supported by Joseph Lubin, founder of ConsenSys and one of the eight co-founders of Ethereum, who has taken on the role of SharpLink's new chairman. Lubin has stated on various occasions: "SharpLink's bold ETH strategy marks a milestone for institutional adoption of Ethereum," and pointed out that "ETH not only possesses Bitcoin-like value storage properties, but due to predictable scarcity and ongoing yield, it has become 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 future financial architectures."

The cryptocurrency treasury has suddenly become a trend: the success of SharpLink (whose stock price soared 400% after the announcement) has prompted peers to follow suit with this strategy. The listed company Bitmine Immersion (BMNR) also recently announced it raised $250 million specifically for purchasing Ether, positioning itself as an "Ethereum treasury strategy company." Bitmine is led by Fundstrat co-founder Tom Lee, and its stock price surged over 3000% within a week after the announcement, attracting multiple top-tier institutional investors.

Meanwhile, observers report that several companies, including those in Europe, are also exploring reserve allocations focused on Ether. While some forward-looking companies like BTCS Inc. had already begun holding ETH before this, SharpLink's initiative represents a new height of mainstream adoption.

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

At the same time, institutions are also making arrangements through funds: the first Ether futures ETF will be launched at the end of 2024, and the approval of the spot Ether ETF is also imminent, which may unleash billions of dollars in new demand. The CEO of a certain asset management company stated in an interview: "I believe that launching the Ether 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 being regarded by publicly 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 price chart of Ethereum shows multiple bullish technical signals indicating that the trend may reverse upwards.

After a long period of stagnation, in May 2025, ETH once again rose above the weekly MA200------this is one of the most classic indicators of a bull run 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 is above the 200-week moving average, which has 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 long bodies and shallow shadows, indicating strong buying pressure and 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, it has been noted that there is a bullish chart pattern—such as several analysts pointing out a potential bull flag pattern on the ETH chart, which, if confirmed, could target an upward movement above 3000 dollars in the mid-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, Ethereum's technicals have regained support at the 200-week moving average, with higher highs and lows and increased 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 rapid advancement roadmap

The technical roadmap of Ethereum is steadily advancing, continuously enhancing its foundational value. The Pectra upgrade, which will go live on May 7, 2025 (the Prague + Electra hard fork), marks the entry of Ethereum into a new phase, 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 increase Layer-2 throughput. These changes reduce costs, enhance L2 performance, accelerate the adoption of optimistic Rollups and zk-Rollups within the ecosystem, and clear obstacles for future L1 scaling.

At the same time, the Pectra upgrade supports account abstraction, such as gas-free payments and batch transactions, which lays the foundation for the large-scale adoption of stablecoins in the future, further widening the gap with other public chains in use.