Ethereum (ETH) has seen explosive growth in network activity in recent weeks, with nearly 1 million new addresses added weekly since May. Despite this positive momentum, ETH continues to trade around $2,510, facing critical technical resistance and the risk of a price breakdown if key support levels fail to hold.

The surge in network growth comes as the GENIUS bill—a major piece of stablecoin legislation—moves closer to becoming U.S. law, offering a potential regulatory boost for the Ethereum ecosystem. However, technical indicators show mixed signals, with investors watching closely to see if Ethereum can maintain its current price structure or risk a further correction.

Ethereum Network Booms as Stablecoin Bill Gains Traction

According to data from Santiment, Ethereum has added between 800,000 and 1 million new addresses per week since May, reflecting heightened user activity and growing interest in the platform. This figure is up nearly 33% compared to the same period last year.

Santiment analysts attribute this surge to favorable developments around the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) bill, which passed the U.S. Senate this week with a 68–30 bipartisan vote.

The bill, if enacted, will provide a comprehensive regulatory framework for stablecoins and is widely expected to benefit Ethereum, the primary network supporting decentralized finance (DeFi) and stablecoin activity.

Trump Urges Swift Passage as Ethereum Gains Attention

Former President Donald Trump took to social media platform Truth Social, urging the House of Representatives to pass the GENIUS bill “LIGHTNING FAST.” He described the bill as a symbol of “American brilliance” and said it would position the U.S. as a global leader in digital assets.

The bill’s advancement has generated optimism in the crypto space, especially among Ethereum supporters. With the House expected to vote before the August recess, the GENIUS bill may become the first major crypto law in the U.S., offering regulatory clarity that investors have long awaited.

Meanwhile, companies like Apple, Amazon, JP Morgan, and Morgan Stanley are reportedly exploring stablecoin solutions—many of which would likely utilize Ethereum’s network for deployment.

Ethereum’s Growing Role as Global Infrastructure

Beyond legislation, analysts argue that Ethereum is rapidly maturing from a speculative asset into core global infrastructure. Vivek Raman, co-founder of Ethrealize, noted in a recent FXStreet interview:

“Once blockchains become infrastructure that the whole world is powered on… ETH becomes like the internet.”

Raman further suggested that Ethereum has long been undervalued due to regulatory uncertainty, and the lifting of that uncertainty may lead to a market repricing of ETH as a store of value, rather than just a technology play.

Currently, Ethereum dominates the stablecoin space, with $126 billion in stablecoins hosted on its Layer 1 chain, giving it over 50% market share, according to DeFiLlama.

Ethereum Price Forecast: Holding $2,450 is Crucial

Despite all this positive momentum, Ethereum’s price action remains under pressure. The token is trading near $2,510, just above its key support at $2,450. This level is aligned with the 38.2% Fibonacci retracement, as well as the 50-day SMA and Exponential Moving Average (EMA), forming a strong technical confluence.

If ETH holds this level, analysts believe the token could recover and attempt a retest of the upper boundary of its current channel, potentially revisiting the $2,700 range.

However, failure to hold the lower boundary could lead to a sharp breakdown toward the $2,260 to $2,110 zone, where the 100-day SMA provides additional support.

Technical Indicators Show Weak Momentum

While price support remains intact for now, momentum indicators suggest Ethereum is at a critical juncture. The Relative Strength Index (RSI) and Stochastic Oscillator (Stoch) are both moving sideways and remain below their neutral levels—signaling bearish or indecisive market sentiment.

Further, Ethereum futures liquidations have totaled $16.59 million in the past 24 hours, with both long and short positions being affected. This high level of liquidation underscores the uncertainty and volatility in ETH’s short-term outlook.

What’s Next for Ethereum?

With institutional interest rising, legislative clarity improving, and network activity surging, Ethereum appears to be on the verge of a major turning point. However, the technical setup is fragile, and a breakdown could signal a broader correction if buyers fail to defend key levels.

If Ethereum manages to hold the $2,450 support and break above the 200-day moving average, it could reignite bullish sentiment and spark a move toward $2,700 and beyond.

But if it breaks down, investors should watch for support near $2,260, followed by $2,110, where stronger buying interest may return.

Conclusion

Ethereum’s long-term fundamentals are strengthening, supported by soaring network growth and potential regulatory breakthroughs like the GENIUS bill. Yet, the immediate Ethereum price forecast hinges on whether ETH can hold its current support level and regain bullish momentum.

With market sentiment still on edge and technical indicators flashing caution, Ethereum remains one of the most closely watched assets in the crypto space. The next few days could prove pivotal.