- Ethereum has reclaimed its dominance in DeFi, surpassing Solana in DEX trading volumes, while analysts argue that ETH is “extremely undervalued” after months of declines.
- With historical trends suggesting a 60% Q2 rebound, Ethereum could break past $3,000 if bullish momentum continues.
Ethereum’s price is “extremely undervalued,” according to a top crypto market analyst, following four consecutive months of declines. This statement comes as Ethereum reclaims its dominance in a key network metric, overtaking Solana in decentralized exchange (DEX) trading volumes. With historical trends suggesting a bullish rebound, could ETH be primed for a surge past $3,000 in Q2 2025?
Also read: IOTA Gears Up for Rebased Mainnet Launch: Q1 2025 Progress Update
Ethereum Reclaims DeFi Crown from Solana
For the past six months, Solana has outpaced Ethereum in DEX trading volumes, largely due to a surge in speculative meme coin activity. However, Ethereum has now reclaimed the top spot. Data from DeFiLlama shows Ethereum’s monthly DEX volume has climbed to $64 billion, surpassing Solana’s $52 billion.
The decline in meme coin activity on Solana, combined with Ethereum’s enduring role as the foundation of decentralized finance (DeFi), has contributed to this shift. Despite efforts by platforms like PumpFun to maintain speculative trading momentum, market conditions have dampened risk appetite among traders.
Is Ethereum Set for a Major Rebound?
Prominent crypto analyst Crypto Rover argues that Ethereum’s current market position mirrors patterns seen before previous price breakouts. He points to historical data where ETH rebounded strongly after four months of consecutive losses.
Adding to the optimism, Coinglass data shows that Q2 has historically been one of Ethereum’s best-performing quarters, averaging returns of 60%. If this trend continues, ETH could surpass $3,000 in the coming months.
Technical Analysis: Bullish Signals Emerge
On the 4-hour timeframe, Ethereum has formed a rounding bottom pattern, a classic bullish reversal signal. Based on this structure, ETH could see an immediate price surge of nearly 8%, bringing it to around $2,062.
Additionally, Ethereum’s Relative Strength Index (RSI) has climbed to 50, a neutral zone where buyers and sellers are battling for control. Meanwhile, the Awesome Oscillator (AO) has flipped positive, suggesting underlying bullish momentum.
Can ETH Overcome Selling Pressure?
Despite these bullish signals, Ethereum faces headwinds. Institutional selling has been significant, with over 760,000 ETH offloaded by whales since late February. ETF inflows also indicate strong sell pressure from institutional players.
However, if ETH can break the $2,000 psychological barrier, it could trigger a fresh wave of buying interest and set the stage for a strong Q2 performance. With market indicators flashing green and Ethereum reclaiming its dominance in DeFi, the stage may be set for a major rebound.
