ETH Price Turns Bullish as Solana Meme Coin Drama Unfolds
The price of Ethereum (ETH) has been trading below $3,000 for weeks and has not lost since February 2. Solana And with Ethereum Stablecoin Inflows and rising TVL support its momentum.
Meanwhile, Ethereum’s price chart shows a higher movement in short-term EMA, suggesting that a potential yellow cross could push ETH to $3,020. If this trend continues, ETH may see 22% of the rallies, and a failure in the breakthrough could lead to another critical support level of retesting.
Stablecoin assets flow from Solana to Ethereum
Controversy surrounding Solana Meme coins, Lookonchain data suggests capital is turning to Ethereum. Stablecoin holdings in Ethereum (USDC and USDT) have increased by $1.1 billion over the past seven days, while Stablecoins’ $772 million exited Solana.
This is after the release Libra meme coinsThis has caused an impact from many users and has raised concerns about the sustainability of the Solana ecosystem. Regarding the questions of major players such as Jupiter, pumpfun and Meteora, investors appear to be spinning their funds to Ethereum.
The data suggest that traders may reduce exposure to Solana due to uncertainty in their meme coin scene and major protocols.
at the same time, Ethereum seems to benefitattract new liquidity, you can come on defi An activity, transaction or new token is released. If this trend continues, Ethereum may see further inflows, and Solana may need to restore confidence to reverse the ongoing outflows.
Ethereum network TVL is on the rise
The total value lock-in (TVL) of these two chains also reflects this trend. Solana’s TVL peaked at $14.2 billion on January 18, but has been steadily declining since then.
In the past four days alone, it has dropped from $10.95 billion to $10.5 billion, indicating capital outflows Project Solana.
TVL measures total assets locked in the FEFI scheme of blockchain, representing liquidity and overall activity. The rising TVL shows increasing confidence and participation, while the decline indicates capital leaves the ecosystem.
at the same time, Ethereum TVL has been increasing, from $59.66 billion to $63.7 billion from February 2 to February 16.
This shift suggests that investors prefer Ethereum over Solana, thus enhancing Stablecoin data showing capital rotation.
If this trend continues, Ethereum can strengthen its position, and Solana may struggle to recover liquidity loss.
ETH price forecast: potential 22% upside
Ethereum Price The chart shows that its EMA series remains bearish, with short-term EMA lower than long-term EMA. However, the short-term line is moving upward and soon the golden cross will form.
If this happens, ETH may test resistance at $3,020, breaking $3,000 for the first time since February 2. The ongoing momentum could increase ETH to $3,442, which is the potential to increase by 22% at the current level.
Other external factors in the short term, such as Upcoming Pectra upgradecan also support this upward trend.
On the downside, Ethereum could regain support at $2,551 if the downtrend is strengthened.
Losing this level could result in a deeper drop to $2,160. Bears need to break the main support zone, while bulls must maintain momentum so that they exceed resistance.
Disclaimer
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