Ethereum (ETH) has reclaimed its position as the leading blockchain for decentralized exchange (DEX) trading volumes, surpassing Solana (SOL) after a six-month gap. According to DeFiLlama, Ethereum’s monthly DEX trading volume has surged to $64 billion, outpacing Solana’s $52 billion.
The shift comes amid a decline in meme coin speculation on Solana. While platforms like Pump.fun attempted to drive engagement, broader market volatility dampened risk appetite, reducing activity on Solana-based trading venues. Ethereum’s dominance in DeFi applications and institutional trust has helped it reclaim its top spot.
Analyst: Ethereum Price ‘Extremely Undervalued’
Crypto market strategist Crypto Rover believes Ethereum’s current price is significantly undervalued, citing historical trends that suggest a major rebound could be imminent. The analyst pointed out that ETH has recorded four consecutive months of losses, a pattern last seen in the 2018 bear market before a strong recovery.
- Key bullish signals for Ethereum:
- Historical multi-month corrections often precede bullish reversals.
- Whale accumulation patterns suggest growing long-term interest.
- Ethereum’s on-chain activity remains robust despite price stagnation.
However, Ethereum is still under selling pressure. Reports indicate that since February 25, large holders, or whales, have offloaded over 760,000 ETH. Additionally, institutional outflows from Ethereum ETFs highlight continued caution among investors.
Ethereum Eyes 60% Q2 Gains, Targets $3,000
Looking ahead, Ethereum may be poised for a strong Q2 performance. Historical Coinglass data shows that Ethereum’s second quarter returns average 60%, making it one of the best-performing periods for the asset. If history repeats, ETH could break past the $3,000 resistance level.
Short-term technical indicators also show potential for a bullish reversal:
- Ethereum’s 4-hour chart reveals a rounding bottom pattern, often signaling a trend shift from bearish to bullish.
- This pattern suggests a potential 7.96% price rally, pushing ETH toward $2,062.
- The Relative Strength Index (RSI) is at 50, indicating a balance between buyers and sellers.
- Awesome Oscillator (AO) bars have flipped positive, reflecting rising bullish momentum.
Breaking the $2,000 psychological barrier would be a crucial milestone for Ethereum, potentially triggering a broader rally. Given analysts’ bullish outlook and Ethereum’s rising DeFi activity, ETH could be on the verge of a major market reversal.