Ethereum Surges 20% as GENIUS Act Vote Nears

Ethereum's price has been on an upward trajectory, with traders and analysts closely monitoring the potential impact of the GENIUS Act vote in the US House. The bill, which has already passed the Senate, aims to regulate stablecoins by requiring issuers to hold 1:1 reserves and comply with federal guidelines, including anti-money laundering measures. If passed, the GENIUS Act could unlock billions in stablecoin demand directly into the Ethereum network, potentially driving the price of Ethereum (ETH) towards $4,000.

The anticipation surrounding the GENIUS Act has already sparked significant institutional interest in Ethereum. US-listed Ethereum ETFs recorded their biggest inflows since launch, with a net inflow of 225,857 ETH last week. This trend reflects a growing institutional appetite for Ethereum, with major treasury holders steadily accumulating the asset. In the past month, Ethereum treasury companies have acquired more than 545,000 ETH, valued at over $1.6 billion. This consistent buying during market rallies has contributed to Ethereum's recent momentum, with the asset breaking above the $3,000 mark for the first time since February.

The technical setup for Ethereum also supports a bullish outlook. The asset has formed a confirmed breakout pattern, often described as a “bull flag,” with ETH holding above the key $3,000 level. If Ethereum can reclaim the $3,000 resistance with sustained buying, the next target for traders is $3,300. A confirmed break above this level could open a path toward the $4,000 mark.

However, the recent price correction has led to significant liquidations, with over 130,000 traders liquidated in the past 24 hours and total losses nearing $500 million. Ethereum was the second-largest contributor to this number, with $106 million in wrecked long positions. Despite these liquidations, Ethereum remains well ahead on a weekly basis, indicating a strong underlying demand for the asset.

In addition to the GENIUS Act, two other crypto-focused bills are scheduled for debate this week. The CLARITY Act aims to define digital assets as either securities or commodities, potentially resolving the long-standing dispute between the SEC and CFTC. The Anti-CBDC Surveillance State Act seeks to prevent the rollout of a central bank digital currency in the United States, citing privacy concerns. These bills, along with the GENIUS Act, could have significant implications for the cryptocurrency market and Ethereum's price trajectory.

In summary, the upcoming GENIUS Act vote has sparked a bullish surge in Ethereum's price, with traders eyeing the $4,000 mark. The bill's potential to unlock billions in stablecoin demand, coupled with growing institutional interest and a strong technical setup, supports a positive outlook for Ethereum. However, traders should remain cautious of potential liquidations and monitor the outcome of the GENIUS Act vote, as well as the other crypto-focused bills scheduled for debate this week.