Ethereum Surges 26% as US Legislation and Institutional Adoption Boost Confidence

Ethereum (ETH) experienced a significant price surge of 26% last week, driven by two primary factors. The first was the passage of the critical cryptocurrency legislation known as the "Genius Act" in the United States. The second factor was a market shift towards investing in cryptocurrencies beyond Bitcoin, which has led to increased interest in Ethereum. This shift has positioned Ethereum as a top choice among Wall Street investors.

Cryptocurrency analysts have observed substantial buying activity from large Ethereum investors. Over the past two weeks, these investors have acquired more than 500,000 ETH. This buying spree is seen as a strong indicator of confidence in Ethereum's future prospects. Historically, such large-scale purchases often precede significant price movements or developments within the Ethereum ecosystem.

The growing interest in Ethereum is further supported by the adoption of Ethereum-based blockchain infrastructure by traditional financial institutions. Major players have announced plans to tokenize assets using Ethereum's blockchain. This trend suggests that traditional finance is increasingly integrating with Ethereum's technology. Currently, Ethereum holds over 60% of the tokenized real-world assets, and this figure is expected to rise.

The potential for Ethereum's growth is further amplified by the increasing market value of stablecoins. If stablecoins reach a market value of 2 trillion dollars, as predicted by some analysts, Ethereum's usage could see exponential growth. This is because stablecoins often rely on Ethereum's blockchain for their operations.

Analysts have made bullish predictions for Ethereum's price. According to a report, Ethereum's price is expected to reach 4,000 dollars by the end of July, representing a 7% increase from its current price of 3,744 dollars. Furthermore, based on current market conditions and valuation models, Ethereum's price could potentially reach between 10,000 and 15,000 dollars by the end of the year.

The reduction in Ethereum's exchange reserves, which have decreased by over 317,000 ETH since early July, is seen as a clear signal of strong investor confidence. This aggressive trend is interpreted by analysts as a strong indicator that Ethereum's price could soon surpass 4,000 dollars.

Cryptocurrency traders have also expressed optimism about Ethereum's future performance. One trader noted that while many altcoins have seen significant declines from their peak prices, Ethereum has shown resilience and is close to its all-time high. This positions Ethereum as a leading cryptocurrency with substantial upside potential.