Ethereum (ETH) is up nearly 7% over the past two days after rebounding from the $3,270 support.
While the altcoin season is yet to fully kick in, Ethereum’s fundamentals hint at bullish investor sentiment.
Many analysts predict that ETH could ‘uncoil’ in 2025 after performing relatively poorly compared to BTC in 2024.
As ETH strivez to find a close above the psychological resistance at $4K, a new project called Solaxy is aiming to combine the power of Ethereum and Solana to build a new layer 2 blockchain, for which it’s raised over $5m so far.
ETH Showing Early Signs of a Rally in 2025
Ethereum recently found a convincing close above the psychological $4,000 mark.
Although it didn’t exactly match Bitcoin’s explosive gains and fell back below this level, ETH still managed to hold its ground well above the 200-day EMA. I’s hovering around the $3,490 level at press time.
As Layer 2 ecosystems continued to expand, the prospect of Ethereum-based ETFs is drawing major institutional interest.
Ethereum’s total value locked (TVL) even surged past $90 billion this month—its highest level since April 2022.
Many analysts believe Ethereum’s relative strength compared to Bitcoin could climb in January.
The ETH/BTC ratio has jumped by about 3.3% over the past 30 days, and MN Capital founder Michael van de Poppe thinks it might soon break through 0.04.
This could provoke a BTC consolidation and set the stage for an ‘Altcoin run.’ Traders should still closely watch the Altcoin Season Index before hopping into altcoins.
Many Ethereum supporters have highlighted a few big reasons to stay bullish in 2025.
These include major network upgrades, growing institutional demand, the rise of AI agents, and a potentially more crypto-friendly regulatory stance from incoming U.S. President Donald Trump’s administration.
One key upgrade to watch next year is the Pectra milestone, which many believe will further boost Ethereum’s scalability and utility.
ETH saw a 53.2% gain over the past year, moving from $2,350 to around $3,491 as of this writing.
On the other hand, other major assets like Solana and XRP witnessed an impressive upside. During this time, they saw YTD gains of around 93% and 276%, respectively.
This suggests that Ethereum still has plenty of upside, especially as ETH’s current price has yet to factor fully into these fundamental developments.
In fact, a favorable market environment could set off an altcoin run that extends well beyond Ethereum.
This is why many investors are turning to early-stage tokens like Solaxy in hope to catch the next wave of momentum in this evolving market.
Solaxy is Expanding Ethereum and Solana Ecosystems, Top Pick for Altcoin Season?
Solaxy ($SOLX) is a trending new token on investors’ radars after its recent presale launch. It is the native token of the world’s first Solana Layer 2 that raised over $5.2 million within just two weeks.
At around half a million dollars daily, the funding rate reflects the excitement surrounding Solaxy’s mission to solve Solana’s congestion issues. The project aims to batch transactions off the Layer 1 chain and settle them in one move.
That goes a long way to easing the congestion and high fail rates plaguing Solana while retaining its strengths, like quick transaction finality and low costs. Solaxy’s unique approach could enable Solana to unlock its full scalability potential.
It’s worth noting that Solaxy operates as a multi-chain Layer 2, spanning Solana and Ethereum, so it’s also expanding the Ethereum ecosystem.
Such a cross-chain approach integrates Solana’s lightning-fast transaction speeds with Ethereum’s deep liquidity.
This could lead to a wave of new dApps, meme coins, and DeFi use cases on the platform, which can significantly increase the demand for $SOLX.
At press time, the staking mechanism of Solaxy has dynamic yields of up to 760% per annum. However, this rate will adjust as more tokens enter the pool.
