Ethereum (ETH) is gaining momentum, trading around $2,975 after a 17% increase over the past week. A pivotal event this week is the vote on the GENIUS Act in the US Congress, which could lead to significant regulatory changes for stablecoins and impact capital inflows into Ethereum.
Impact of the GENIUS Act on Ethereum Market
The vote on the GENIUS Act, which has already passed the Senate on June 18, could drastically change the rules for stablecoin issuers, requiring them to maintain 1:1 reserves and register under federal guidelines. It also mandates compliance with anti-money laundering requirements. Analysts anticipate that the passage of the law will pave the way for institutional investments in Ethereum, with a current approval likelihood estimated at 95%.
Rising ETF Assets and Institutional Purchases
The recent momentum of Ethereum is supported by an increase in institutional interest. Data from Glassnode reveals that US-listed Ethereum ETFs recorded their largest net inflows since launch, amounting to 225,857 ETH. This aligns with a trend of asset accumulation by institutions, which have acquired over 545,000 ETH in the past month, valued at over $1.6 billion.
Liquidation Situation and Sentiment Shift
In the past 24 hours, over 130,000 traders were liquidated, with total losses nearing $500 million. Ethereum was the second-largest contributor to this figure, with $106 million in long positions liquidated. If ETH manages to reclaim the $3,000 level with sustained buying, traders are monitoring $3,300 as the next key target.
The anticipated vote on the GENIUS Act and growing institutional interest could significantly influence Ethereum's dynamics in the coming weeks. Investors will closely watch regulatory changes and market price fluctuations.
