Ethereum's 40% Surge Slows, Correction Looms; Solana's Solaxy Aims to Boost Scalability

Ethereum's (ETH) recent 40% surge has shown signs of slowing down, raising concerns about a potential correction. The cryptocurrency's price has been range-bound between $1,450 and $1,900 for a month, but a recent breakout has pushed it towards the $2,500 mark. This rally is driven by actual spot market demand rather than speculative trading, as indicated by a decline in the estimated leverage ratio and significant trade outflows.

However, the slowdown at $2,500 has led to bearish technical signals, with the daily RSI breaching overbought territory at 80. This suggests buyer exhaustion and a potential correction. Despite this, a symmetrical triangle pattern forming since 2021 is back in play, backed by strong momentum indicators. The RSI has broken into bullish territory, and the MACD has flipped bullish for the first time since the post-inauguration rally. The 200SMA has also returned as strong support, signaling a potential bottom for the correction and adding weight to the idea of a forming long-term uptrend.

If buying pressure returns, Ethereum could target a breakout from this triangle, with the next key target being the $2,970 resistance—an immediate 17% gain. A further advance to retest the upper resistance would require a 50% surge to around $3,750. Fundamental factors like the Pectra upgrade and improving macro conditions further bolster a cautiously optimistic long-term outlook for Ethereum.

Meanwhile, the Solana ecosystem is addressing its biggest limitation: scalability. The arrival of Solaxy ($SOLX), Solana’s first-ever Layer-2 scaling solution, has shifted the narrative. By processing transactions off-chain and finalizing them on Solana, Solaxy significantly reduces congestion and lowers transaction costs, while offering seamless interoperability across both blockchains. With over $35 million in its ongoing presale, investors are already rallying behind the project. When demand for Solana increases, it could be the one to reap the fresh ecosystem liquidity.