The Future of Ethereum: An Analysis of the Top Ten Core Reasons

When the U.S. regulators give the green light, Wall Street institutions quietly lay out their plans, and Vitalik accumulates multiple Layer 1 scaling solutions, while the Federal Reserve hints at interest rate cuts, all macro narratives converge on the same main line: Ethereum.

Regulatory thaw, technological iteration, macro trends, and deflationary mechanisms are driving four wheels, paving the way for an accelerated runway in the next 3 to 18 months.

ETF net inflows continue to hit new highs, on-chain gas fees are about to break 5 million, Ethereum has returned to the weekly MA200; the staking rate is approaching 30% and still climbing, from North American ETH version MicroStrategy SharpLink writing ETH onto its balance sheet, to Robinhood supporting Ethereum L2 trading on U.S. stocks in Europe, and then to Hong Kong accepting ETH as proof of assets for immigration, the core value of Ethereum is becoming a global consensus.

Policy games, capital dynamics, protocol improvements, and the iterative reform of foundations are all in sync and booming - there is only one key question left in the market: are you ready?

The following 10 reasons will layer by layer break down how ETH has evolved from industry consensus to a cross-cycle explosive engine.

1. The biggest regulatory benefits and policies in history

The dramatic shift in the US regulatory stance brings new optimism for Ethereum. SEC's new chairman Paul Atkins expressed support for crypto innovation - this stands 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Atkins has withdrawn the proposals regarding decentralized finance and self-custody from the Gensler era, opting instead for an "innovation-first" strategy.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 meeting, Atkins even emphasized that developers should not be punished for writing decentralized code.

This is a significant policy turnaround: The SEC under Gensler once considered Ether as "unregistered securities" and conducted investigations into it. Now, under pro-crypto leadership, Ethereum enjoys a clearer regulatory outlook. With decentralized finance gaining recognition at the highest levels - Atkins referred to self-custody as "America's fundamental value" - hostile regulatory threats have notably diminished, greatly encouraging institutional participation in the Ethereum market.

In addition, recent legislative movements in the United States, especially the Senate's "GENIUS Act", mark a key turning point for the clarity of regulation regarding cryptocurrency dollar stablecoins.

These bills aim to establish a clear framework for payment stablecoin issuers, given that Ethereum serves as a major 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 "Guidance and Establishment of the U.S. Stablecoin National Innovation Act" (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 banks and non-bank companies to issue stablecoins and accept regulation under a license.

Ethereum as a stablecoin infrastructure

By explicitly legalizing and regulating the issuance of stablecoins, these bills validate the dollar-backed tokens primarily existing on the Ethereum network. For example, USDC and PYUSD are ERC-20 tokens on Ethereum that rely on the security and global reach of Ethereum. The federal framework consolidates 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 to circulate ( US dollar stablecoins in DeFi and payments ).

DeFi and US Dollar Liquidity

The DeFi ecosystem of Ethereum, 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 (, such as 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, and redemption rights ) to reduce systemic and legal risks. The ultimate effect is the formation of a supportive policy environment, anchoring Ethereum's role in the digital dollar economy.

Finally, another cryptocurrency bill, the CLARITY Act ( H.R. 36330 ), has made considerable progress recently.

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

The "CLARITY Act" has removed the biggest cloud 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 fall under the definition of "brokers." This combination significantly reduces the regulatory risk premium, paves the way for Wall Street products related to spot and staked ETH, and opens the green light for DeFi to continue innovating on the network.

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

2. "ETH Version of MicroStrategy" Leads Institutions in a Thousand Ships Race

An increasing number of large capital players are viewing Ethereum as a strategic asset, a trend accelerated by a notable initiative from SharpLink Gaming. The Nasdaq-listed company SharpLink recently completed a milestone funding allocation: acquiring 176,000 ETH( for approximately 463 million USD), making Ethereum 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 yield and enhance the security of the Ethereum network.

SharpLink's CEO described this as a "landmark moment" and explicitly compared the strategy to MicroStrategy's Bitcoin strategy, only with Ethereum in place of Bitcoin. 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 in institutional adoption of Ethereum," and pointed out that "ETH not only possesses Bitcoin-like value storage properties but also becomes a truly productive reserve asset due to its predictable scarcity and ongoing yield; as Ethereum increasingly becomes the underlying architecture of the digital economy, ETH is also seen as a strategic investment towards the future financial architecture."

The cryptocurrency treasury has suddenly become a trend: SharpLink's success ( saw its stock price soar by 400% after the announcement ), prompting peers to rush to imitate this strategy. The listed company Bitmine Immersion ( BMNR ) also recently announced it raised $250 million specifically for purchasing ETH, positioning itself as an "Ethereum treasury strategy company." Bitmine is led by Fundstrat co-founder Tom Lee, and its stock price skyrocketed by over 3000% within a week after the announcement, attracting several top-tier institutional investments.

At the same time, observers report that multiple 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 increasing accumulation of ETH by corporate treasuries is undoubtedly a positive development - this locks in the supply (, especially since most tokens will eventually be staked ), signaling institutional confidence.

At the same time, institutions are also making arrangements through funds: the first Ethereum futures ETF is set to launch at the end of 2024, and the approval of a spot Ethereum ETF is also imminent, which could unleash new demand worth billions of dollars. BlackRock CEO Larry Fink stated in an interview: "I believe that launching an Ethereum ETF is valuable. This is just the first step towards asset tokenization, and I truly believe this is the direction of our future."

What can be seen is that Ethereum is increasingly regarded by listed companies and funds as a strategic investment and reserve asset, similar to the development trajectory of Bitcoin in the previous cycle.

3. The 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 stood above the weekly MA200 - one of the classic indicators of a bull market return.

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

From May to June, ETH remained above the 200-week moving average, which is approximately $2,500(. This 200-week moving average has become a support "launch pad" - ETH is building a base 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 wicks, indicating strong buying pressure and less selling pressure during pullbacks. The rising slope of key moving averages and the rebound trend of the MACD indicator show that upward momentum is strengthening. Additionally, there is a bullish chart pattern observed - several analysts have pointed out the potential bull flag pattern appearing on the ETH chart, which, if confirmed, could target a mid-term rise above 3000 dollars.

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 technicals of Ethereum have regained the 200-week moving average, with higher highs and lows, as well as enhanced momentum, indicating that the asset is in the early stages of a significant bullish reversal, supporting a positive outlook for the next 3 to 18 months.

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) 4. Ethereum Pectra upgrade rapid progress roadmap

The technology roadmap of Ethereum is progressing steadily, continuously enhancing its fundamental value. The Pectra upgrade, which will go live on May 7, 2025, marked by the Prague + Electra hard fork ###, signifies a new phase for Ethereum, with its 11 EIPs covering improvements in various aspects from smart wallets to scalability.

The most iconic changes include: increasing the staking cap 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 obstacles for future L1 scaling.

At the same time, Pectra's 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 and further widens the gap in user experience and flexibility compared to other public chains. As Ethereum core developer Tim Beiko summarized on April 24: "One of the highlights of Pectra is EIP-