Solana’s Downfall Could Fuel Ethereum Price Rally to $3,500

Ethereum (ETH) price may soon surge to $3,500, in a rally driven by Solana’s underperformance. One crypto analyst observed that capital is flowing back to Ethereum amid a surge in net flows and stablecoin supply. Another noted that Ethereum price is about to make a bullish breakout from consolidation. As the market sentiment flips bullish and Solana underperforms, is the $3,500 price in sight?

ETH value today trades at $2,675 with a 1.4% decline in 24 hours. Trading volumes stood at $18 billion, down 14% in 24 hours.

2 Bullish Signals Support Ethereum Price Rally to $3,500

Analysts on X forecast that despite Ethereum price being stuck within a consolidation range between $2,400 and $2,700 in the last seven days, bullish signs are aligning that may ignite the next bullish leg to $3,500. These signals include:

• Surging netflows from Solana to Ethereum
• Incoming triangle breakout

Surging Netflows from Solana to Ethereum

Analyst CryptoGoos on X notes that in the last 24 hours, Ethereum has seen a massive surge in capital inflows. During this period, Ethereum ranked as the top asset in terms of bridged net flows, with inflows surpassing $5 million. In comparison, Solana had less than $2 million in bridged assets.

A similar outlook is seen with the change in stablecoin supply. In 24 hours, stablecoin supply on ETH surpassed $200 million, while during the same period, stablecoin supply on Solana recorded outflows.

The surging netflows signal that the ongoing Solana downfall may be bullish for the Ethereum price as capital rotates to the largest altcoin.

Incoming Triangle Breakout

Popular analyst Sensei also notes that Ethereum price is about to break out from an ascending triangle pattern. The analyst observed that this altcoin has been forming high support levels while facing resistance at the flat upper trendline. If ETH overcomes this resistance, the price will break out past $3,500.

In his analysis, Sensei observed that this potential breakout mirrors the trend that happened earlier this month, which saw ETH price surge from below $2,000 to above $2,600 within a week. If history rhymes, Ethereum may soon reach multi-month highs.

Going by this forecast, the Ethereum price rally that commenced earlier this month will likely continue. The surging inflows and stablecoin supply also invalidate the bearish ETH sell signals that hinted at a correction to $2,000.

Final Take

Ethereum price has been facing strong rejection at the $2,700 resistance level. However, on-chain data shows that capital inflow is returning to the largest altcoin as Solana continues to underperform. A looming breakout from a triangle pattern also hints that ETH may soon surge to $3,500.

To discover how high Ethereum price will go between 2030 and 2050 – Read This

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muthoni

Muthoni Mary is a seasoned crypto market analyst and writer with over three years of experience dissecting blockchain trends, price movements, and market dynamics. With a sharp eye for technical analysis and an in-depth understanding of on-chain metrics, she delivers insightful, data-driven content that helps investors navigate the fast-paced world of digital assets.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.