Ethereum's Price Surges 50% in a Month, Eyes $3,000 Mark

Ethereum's price has surged over 50% in the past month, with analysts predicting further gains. The cryptocurrency recently climbed more than 2.5% in 24 hours to trade around $2,536, sparking hopes that it could reach the $3,000 mark this month. This recovery is supported by several bullish technical indicators, including a bounce from a low of $2,440 to touch $2,551, which triggered widespread liquidations across the crypto market.

According to the analyst's forecast, longer-term, Ether could test new highs near $5,000, bolstered by AI integration, spot ETF inflows, and Ethereum’s new Pectra upgrade. This upgrade is supposedly the most significant since the “Merge” transitioned the network from the energy-intensive proof-of-work consensus mechanism to proof-of-stake.

From a technical standpoint, there are two key formations on ETH’s chart over the last three months that suggest a breakout to $4,000 may happen soon. The first is a descending wedge from August to April, where Ethereum’s resistance and support lines are both falling in tandem to create a wedge shape that is often the precursor to explosive price movements. On May 8, the coin began a breakout that halted by May 13 and then fell slightly, creating a bullish flag that Ethereum could launch up from.

However, some short-term losses are expected. Ethereum’s relative strength index is 65 and falling, suggesting a sell-off is likely to stabilize, or even incrementally depreciate, the price by the weekend. After that, the moon is the limit.

As Ethereum awaits new price highs, investors are flocking to the network’s first Layer 2 protocol token before it hits exchanges. Ethereum is the world’s favorite altcoin, sitting ahead of Solana as the leading Bitcoin challenger. However, one new presale token could be the catalyst that helps Solana flip Ethereum one day. Enter Solaxy (SOL), Solana’s inaugural Layer 2 scaling solution. Similar to Ethereum’s Layer 2 protocols, Solaxy validates transactions on a second layer at higher speeds before adding them to the distributed ledger on the first layer. By boosting transaction speed, lowering gas fees, and easing network congestion, Solaxy paves the way for a speedier and cheaper network.

The platform also features full Ethereum compatibility, enabling cross-chain liquidity and expanding its functionality within the wider DeFi landscape. Currently, SOLX tokens are available in a presale phase at a locked-in price of $0.001726, with gradual increases anticipated as the sale advances. Potential approval of Solana-based spot ETFs by the U.S. SEC could significantly boost interest and demand for Solaxy ($SOL), which could lead to explosive Solana and Solaxy price rallies. With more than $37.8 million already secured in funding, it’s evident that large investors are heavily investing in SOLX. Staking rewards of 106% APY offer a further incentive to get in sooner rather than later.