Ethereum Still 39% Below ATH – But 3 Reasons Why ETH Could Rally
As of now, Ethereum is approximately 39.1% below its all-time high (ATH) of $4,891 recorded four years ago. Despite this extended struggle on its price charts, analysts are starting to see a light at the end of the tunnel. One such analyst is Ted Pillows, who suggests that the GENIUS Act could propel Ethereum prices for three major reasons.
Firstly, the Act will bring trillions of stablecoins to the Ethereum ecosystem, thus boosting liquidity across the network. As of press time, Ethereum’s Stablecoin Supply stood at $131.88 billion, while Transfer Volume dropped to $35 billion. If inflows continue rising, it suggests capital is accumulating on-chain and waiting for deployment. Historically, growing stablecoin reserves have preceded higher network activity, a gap that Ethereum has struggled to close this year.
Secondly, the GENIUS Act would enable large U.S. banks to engage with Ethereum directly, significantly expanding adoption, market legitimacy, and capital flows. This increased institutional interest could further fuel demand organically.
Lastly, by resolving long-standing regulatory disputes such as SEC vs. CFTC and lawsuits like Ripple vs. SEC, the Act could provide clarity for sidelined institutional investors, encouraging them to re-enter the market and drive up demand.
Derivatives data signals significant institutional buildup
Interestingly, regardless of existing legal frameworks, institutional demand for Ethereum is at an all-time high. As of press time, Options Open Interest surged by 9.04% to $9.88 billion, while Options Volume spiked 96.74% to $2.26 billion – both per CoinGlass data. ETH’s overall Open Interest climbed to $43.59 billion.
The Options market is dominated by institutional participants, making these metrics a clear signal of rising smart money participation.
Source: ambcrypto.com