Ethereum (ETH 0.82%) has been moving slightly higher in Monday’s trading. The cryptocurrency’s token price was up 0.4% over the previous 24 hours of trading as of 5:45 p.m. ET. Meanwhile, Bitcoin was down 0.6% across the stretch. Ethereum is inching higher today as moderate bullish momentum for altcoins continues to persist after last week’s massive rally. Ethereum is now up roughly 25% over the last seven days of trading.
Ethereum posted massive gains last week thanks to the “Crypto Week” legislative push and the Genius Act being signed into law by President Trump. The Genius Act establishes regulatory frameworks for stablecoins and could help spur much wider adoption for this category of cryptocurrencies.
Many of the leading stablecoins are built on the Ethereum network. In order to run operations on the Ethereum network, a cost needs to be paid with the network’s Ether token. With indications that stablecoins could see much wider adoption, there could be major bullish catalysts for Ethereum’s valuation.
In addition to the bullish catalyst from the Genius Act, Ethereum also appears to be benefiting from some investment dollars moving out of Bitcoin. An increasingly favorable outlook for the crypto industry is causing investors to back altcoins that offer higher reward potential in exchange for taking on higher risk.
Ethereum could be poised to see long-term valuation tailwinds if government support for stablecoins and the broader cryptocurrency is solidified. In addition to the Genius Act being signed into law last week, Ethereum also saw bullish momentum in conjunction with the House of Representatives voting to pass the Clarity Act — legislation that would effectively limit the amount of regulatory control that the Securities and Exchange Commission (SEC) has over cryptocurrencies. While the Clarity Act would still need to be passed by the Senate and signed by President Trump before becoming law, its enactment would likely be a bullish catalyst for Ethereum.
