2 Reasons to Buy Ethereum Before July 2026

Popular cryptocurrency Ethereum (CRYPTO: ETH) may be trading significantly below its all-time high from August 2025, but there's good reason to think that it could be headed for a major breakout this year.

Within the next six months, Ethereum could soar to a price of $4,000 or higher. That's a blistering gain of almost 50% based on today's prices. Here's a closer look at the two powerful catalysts leading the way.

Regulatory clarity

It's impossible to overstate how important regulatory clarity is for the crypto market. It's what leads to faster institutional adoption of crypto, and it's what leads to greater transaction activity on popular blockchain networks. In other words, if market participants know the rules of the road (even if they don't agree with them), it's a huge positive for the crypto market.

That's why I'm keeping my eye on one key piece of crypto legislation that is likely going to be signed into law this summer: the aptly named Digital Asset Market Clarity Act (Clarity Act). This new piece of legislation attempts to establish a clear regulatory framework for the crypto market. It will close existing loopholes, outline the roles of different regulators, define key concepts, and specify how digital assets can be traded.

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If there's one cryptocurrency that's poised to benefit the most from this new crypto legislation, it's Ethereum. As a Layer 1 blockchain network, it's exposed to every nook and cranny of the blockchain world. And it plays an especially important role in the world of decentralized finance (DeFi), which is one of the key areas affected by the Clarity Act.

In theory, passage of the Clarity Act should open the floodgates for more activity on the Ethereum blockchain. And it should make it much easier for financial institutions and big institutional investors to get involved in the crypto market.

Overall, this new regulatory framework should be very bullish for Ethereum. I expect it to get the same type of lift that it did last summer, when Congress passed the Genius Act for stablecoins. That kicked off a remarkable summer rally for Ethereum that ended with it hitting a new all-time high of $4,954 in August.

The rise of asset tokenization

Ethereum is also at the forefront of an important new trend in the financial world known as real-world asset (RWA) tokenization. That's a mouthful, but it simply refers to transforming traditional financial assets (such as stocks and bonds) into digital assets that can be managed and traded on a blockchain.

Right now, Ethereum is the clear leader when it comes to asset tokenization. No other blockchain comes close. So when big Wall Street institutions look to tokenize assets, they turn to Ethereum first. Case in point: when BlackRock (NYSE: BLK) launched its first-ever tokenized fund back in 2024, it chose Ethereum.

Asset tokenization could be a boon for Ethereum. According to top consulting firms, it could be a multitrillion-dollar market opportunity by 2030. If Ethereum maintains its dominant role in DeFi, it's hard to imagine a scenario in which it does not benefit from the meteoric rise of asset tokenization.

According to Wall Street strategist Tom Lee of Fundstrat, asset tokenization is the type of once-in-a-lifetime event that can forever change the global financial system. He compares it to the U.S. decision back in 1971 to go off the gold standard. That's how big a seismic shift asset tokenization could be. In fact, says Lee, it could lead to Ethereum skyrocketing in price to $62,000 or higher.

How high can Ethereum soar in 2026?

Of course, when it comes to Ethereum or any crypto, there are no guarantees. There's simply too much risk and volatility. Complicating matters even further, Ethereum has plenty of competitors nipping at its heels.

It is possible to use data from prediction markets to model the possible price trajectory of Ethereum this year. On the Polymarket prediction market platform, traders recently gave Ethereum a 57% chance of hitting $4,000 this year, a 41% chance of hitting $4,500, and a 29% chance of hitting $5,000. This suggests that traders are relatively bullish on Ethereum this year.

The month that I've circled on my calendar is July 2026. That's when I expect Congress to be putting the finishing touches on the Clarity Act. When that happens, the price of Ethereum could be a coiled spring just waiting to pop. Given that Ethereum has a roughly 1-in-2 chance of soaring by 40% or more this year, the time to buy is now.

Dominic Basulto has positions in Ethereum. The Motley Fool has positions in and recommends Ethereum. The Motley Fool recommends BlackRock. The Motley Fool has a disclosure policy.