Ethereum Price Soars Past $3,700 Driven by ETF Inflows and GENIUS Act

Ethereum has experienced a remarkable surge, climbing over 5% in the past 24 hours and nearly 20% over the last week as of July 20, 2025, pushing its price above $3,700 and toward six-month highs.

This rally has captured the attention of investors and analysts, fueled primarily by unprecedented institutional interest in newly launched spot Ethereum exchange-traded funds (ETFs) in the United States. The combination of robust ETF inflows, favorable legislative developments, and bullish technical indicators has created a perfect storm for Ethereum’s upward trajectory, positioning it as a focal point in the crypto market.

Institutional Demand and Legislative Catalysts Fuel Rally

The launch of spot Ethereum ETFs earlier in July has proven to be a game-changer, with net inflows reaching a staggering $726 million in a single day and cumulative inflows surpassing $3.5 billion. This influx of institutional capital has driven significant buying pressure, as evidenced by a premium on Ethereum traded via Coinbase, a clear indicator of strong spot demand.

The recently signed GENIUS Act, enacted by President Trump last week, has further amplified this momentum by bolstering the stablecoin ecosystem, where Ethereum plays a pivotal role. Major stablecoins like Tether’s USDT and Circle’s USDC, which operate as ERC-20 tokens on Ethereum’s blockchain, have benefited from this legislative support, increasing demand for ETH as the backbone of decentralized finance (DeFi) and stablecoin transactions.

Technical indicators are also painting a bullish picture for Ethereum. The cryptocurrency has decisively broken through key resistance levels, including $3,650, and is forming patterns that suggest potential for further gains toward $4,000 or higher. Options traders are increasingly optimistic, with many placing bets on Ethereum surpassing $4,000 by August, fueled by short liquidations that have added momentum to the rally. This technical strength shows the market’s confidence in Ethereum’s near-term prospects.

Beyond ETFs and technicals, broader market dynamics are contributing to Ethereum’s positive sentiment. The network’s ongoing upgrades continue to enhance its scalability and efficiency, making it a cornerstone of the DeFi ecosystem, which is seeing growing adoption. As institutional and retail investors recognize Ethereum’s critical role in powering decentralized applications and stablecoins, demand for ETH is likely to remain robust.