Ethereum Surges 3.5% to Break Above $3,700

Ethereum posted a 3.48% 24-hour gain, climbing past $3,500 as a wave of regulatory clarity and institutional appetite accelerated inflows into ETH.

The rally comes on the heels of the GENIUS Act’s passage and mounting momentum around BlackRock’s Ethereum ETF proposal—now including staking integration.

Regulatory Tailwinds and ETF Momentum

The U.S. Congress officially enacted the GENIUS Act on July 18, creating a landmark framework for stablecoins. The law mandates full reserves, limits Big Tech involvement, and reinforces Ethereum’s role as the dominant platform for regulated stablecoin issuance—over $80 billion of Tether (USDT) alone circulates on Ethereum.

This legal clarity arrives alongside surging ETF demand. U.S.-listed Ethereum ETFs saw their assets under management jump 40% month-over-month, reaching $14.87 billion. BlackRock’s updated ETHA filing now includes staking, a move that positions ETH as both a growth and yield-bearing institutional asset.

Technical Breakout Amid Overbought Signals

Ethereum decisively broke above the $3,500 resistance, with new support forming at this level. The price now sits 9% above its 7-day EMA ($3,343), confirming bullish breakout structure. However, momentum indicators hint at near-term caution: RSI-7 has surged to an extreme 94.9, often preceding local tops. Meanwhile, MACD histogram readings of +86.83 reflect strong, but potentially exhausted, bullish pressure.

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ETH Leads Altcoin Rotation as BTC Dominance Wanes

The ETH/BTC ratio climbed from 9.71% to 11.38% over the past month, signaling clear capital rotation from Bitcoin into Ethereum. This trend aligns with a broader altcoin resurgence—Santiment’s Altcoin Season Index rose 62% in the past week, with Ethereum leading the charge among large caps.

Ethereum’s outlook hinges on whether ETF inflows and regulatory momentum can offset overbought risks. If Bitcoin stalls below $125K, Ethereum may continue to lead capital flows in the short term.

Kosta Gushterov

Kosta has been working in the crypto industry for over 4 years. He strives to present different perspectives on a given topic and enjoys the sector for its transparency and dynamism. In his work, he focuses on balanced coverage of events and developments in the crypto space, providing information to his readers from a neutral perspective.