- Ethereum surged past $2,820 following SEC Chair Paul Atkins’ optimistic outlook on DeFi regulation, sparking strong buying pressure across staking, futures, and ETFs.
- Ethereum now eyes a breakout above the $2,850 resistance, with potential to rally toward $3,250 if it maintains support at the 200-day SMA.
SEC Chair’s DeFi Remarks Ignite Ethereum Rally
Ethereum (ETH) has ignited fresh bullish momentum, surging over 3% early Wednesday in the Asian session and briefly climbing past $2,820—the highest since late February. This rally follows encouraging comments from Securities and Exchange Commission (SEC) Chair Paul Atkins, who shared an optimistic outlook on decentralized finance (DeFi) regulation during the final Crypto Task Force roundtable for 2025.
Atkins expressed enthusiasm over recent clarifications from the SEC’s Division of Corporation Finance, affirming that staking, staking-as-a-service, and proof-of-work are not deemed securities. His recognition of smart contracts’ resilience within DeFi protocols and the agency’s focus on crafting clear regulatory frameworks sent strong positive signals to investors.
On-Chain Metrics and Derivatives Show Strong Buying Pressure
Following Atkins’ remarks, Ethereum’s on-chain data and derivatives markets reacted with notable strength. The total value locked (TVL) on Ethereum remains dominant, hosting over 55% of global DeFi assets and half the world’s stablecoin supply, according to DefiLlama.
Meanwhile, futures funding rates surged to levels unseen since May 23, triggering over $128 million in liquidations in just 24 hours. Both futures and options volumes rose sharply—up 46% and 51% respectively—while implied volatility climbed, with options skew heavily favoring bullish calls. ETH staking also reached an all-time high, with 34.59 million ETH locked in staking protocols, indicating strong long-term confidence.
Adding to the momentum, US spot Ethereum ETFs have experienced 18 straight days of net inflows, contrasting with mixed Bitcoin ETF flows, signaling a shift in investor preference toward Ethereum as a foundational infrastructure for tokenized assets.
Ethereum Eyes $3,250 as It Tests Critical Resistance Levels
Technically, Ethereum has broken above a rising trendline and the 200-day Simple Moving Average (SMA), a significant hurdle holding ETH back since mid-May. Now, ETH faces resistance between $2,750 and $2,850.
If ETH can hold the 200-day SMA as support, it could surge beyond $2,850, reclaim the crucial $3,000 mark, and target $3,250 next. Indicators support this bullish outlook: the Relative Strength Index (RSI) is climbing into overbought territory, and the MACD histogram is close to flipping positive—a strong sign that upward momentum could accelerate.
On the flip side, failure to maintain the 200-day SMA could push ETH back toward the $2,400–$2,500 support zone. But for now, Ethereum is firmly in the spotlight, poised for a potential breakout fueled by regulatory clarity and increasing investor demand.
With the SEC’s encouraging stance on DeFi and robust on-chain and derivatives activity, ETH looks ready to push higher—making $3,250 the next key price target on the horizon. Keep an eye on the 200-day SMA support; holding that line could be the green light for this bullish run.
