Ethereum Breaks $3,700 Barrier with 3.5% Surge – Bulls Charge Ahead
Ethereum smashes through resistance as markets wake up to DeFi's sleeping giant.
ETH's 3.5% surge past $3,700 signals growing institutional FOMO—just as Wall Street bankers 'discover' crypto (again).
Smart money's piling in while retail traders still think 'blockchain' is a new gym membership perk.
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.
