Market Update

Can Eith compete with Solana?

A brutal sale of weak ETH positions is erased before a tremendous recovery. With a new tariff, whale movements, and network upgrades, is Ethereum preparing for the year 2025?

Diplomatic talks raises recovery

Ethereum (EthPrice was a few harsh days, with a sharp drop to $ 2,150 on February 3, his lowest level since September 2024. The decrease came when the financial markets reaction to the new US tariffs, which entered into force on February 1.

US duty 25 % tariffs for imports from Canada and Mexico and 10 % on Chinese goods, which leads to uncertainty in global markets, including encryption.

Within hours, diplomatic efforts were ongoing. Canadian Prime Minister Justin Trudeau announced that he had spoken to Donald Trump and got a temporary pause for 30 days on the definitions while both countries were working on a broader security agreement.

Mexico has followed a similar approach, as President Claudia Shinbom confirms that the customs tariff will be suspended for a month as part of the ongoing discussions on border security.

After these developments, market morale to improveAnd the price of ETHEREUM recovered to 2700 dollars to this lines on February 4.

At one point, ETH for a short period of $ 2900 after Trump stopped the customs tariff on Canada and Mexico. Almost at the same time, Eric Trump posted X, “In my opinion, it’s time to add $ ETH.

His comment came in the middle The world is financial freedom (WLFI), a DNALD TROMP and Donald Trump JR. Eric Trump, which transports $ 307.41 million in eight assets to Coinbase Prime for the Treasury Management.

It was not long before, the project did not overcome 19,423 LEDO Atheer (StreamI turned it into ETH, then spent $ 5 million in Usdc (USDC) To buy 1826 ETH at $ 2,738. Currently, World Liberty Financial still has $ 96.62 million in various assets through nine well -known portfolios.

Amid these developments, Fidelity took a bold step by purchasing ETHEREUM at a value of $ 49.75 million on February 4.

Despite institutional purchase and price recovery, ETH remains 15 % decrease over the past week and is still less than 45 % lower than its highest level ever at $ 4,890, registered in November 2021.

So, what is already happening in the echerum ecological system, and how can Ethereum prediction in the coming days? Let’s go deeper.

Echerum Ecological System Updates

Ethereum has made critical changes to improve expansion and transaction efficiency.

Increased gas reducing and improving expansion

On February 3, auditors consent Increased gas limit in Ethereum for the first time since 2021, which represents the first post -expression modification.

The increase has raised the gas limit from 30 million to more than 31 million units, with the maximum capacity of 36 million expected soon.

Unlike the previous changes that require a solid fork, the amendment started automatically after more than half of the auditors indicated their support.

Gas represents the arithmetic energy needed to implement smart transactions and contracts on ETAREUM. Each action on the network bears the cost of gas, and the gas limit determines the total calculation that can be treated in one block.

When the volume of transactions exceeds this limit, users are waiting for them to be included in a later block or pay higher fees to determine the priorities of their transactions.

Increasing the gas limit increases the number of transactions and processes that can fit with a mass, which improves total productivity and reduce congestion.

Change also provides more complex decentralized applications to work smoothly, which is beneficial to the increasing ecosystems of financial applications, Nft Platforms, services on the chain.

However, while raising the gas limit helps improve the treatment capacity, it does not address the basic restrictions of ETHEREUM in cost and speed.

For example, Ethereum deals from 1 to 1.5 million daily transactions, while Solana treats between 60 and 65 million. The difference is large, as Solana is not a significant processing of more transactions but also doing this in a small part of the cost, which makes the long -term expansion capacity a constant challenge.

The market position on Ethereum and competitive challenges

To address these concerns, Ethereum’s coming It is expected to enhance the promotion of Pectra, which was appointed live in early 2025 Layer 2 Solutions. The main part of this upgrade includes an increase in BLOB goal from three to six.

Points are large data packages used in Layer-2 scaling solutions, allowing them to temporarily store treatment data instead of writing them directly on the main series of Ethereum. The expansion of the scope of the bittagues effectively increases the productivity of layer 2 networks, making it faster and cheaper.

Layer 2 solutions such as expression (Arb), Optimism (Reference), Zksync (ZK) It already plays an important role in reducing congestion and gas fees for ETAREUM users.

Irrisi, the largest -closed -standing layer network, has witnessed a fixed growth due to its ability to pay multiple ETHEREUM transactions into one compressed guide, and significant reduction costs.

Optimism follows a similar approach, but it merges the incentive model that distributes distinctive symbols to build on projects on its network.

Zksync, which enhances Rollups Zero-Knowled, provides a more advanced scaling solution, provides semi-fixed transactions with fewer fees.

While these 2 layer solutions help reduce congestion issues in ETHEREUM, they highlight the basic contrast between ETHEREUM and their rival.

Unlike ETHEREUM, which depends on additional additional layers, other Blockchain ecosystem has the exact expansion capacity. Solana, collapse (Avax), And even emerging players such as SEI (badCreative to deal with large transactions sizes without the need for external scaling solutions.

Besides technical promotions, the position of Ethereum in the market also faced pressure. The ETH/BTC ratio decreased to 0.027 as of February 4, its lowest level since March 2021 and almost 50 % less than last year.

Eth/btc price chart | Source: TradingView

As Bitcoin continues to get dominant on both liquidity and investor’s interest, the relative evaluation of ETHEREUM remains at scrutiny.

Can Ethereum hold the ground?

The low price of the last ETHEREUM to 2150 dollars on February 3 was not just a reaction to the broader economic uncertainty, but rather was the reset of the market, which led to the removal of the excessive financial lever that accumulated in the open Ethereum interest.

One analyst pointed out a decrease of $ 4 billion in the open interest that eventually helped the market stability: “There was a lot of low -quality waste on the garbage on ETHEREUM, which was closed when the price touches an area of ​​2100.”

He added that these positions were wiped, the ethereum prices to $ 2700 was driven by immediate demand instead of excessive financial lever, indicating a healthier basis for future prices.

From a technical perspective, ETHEREUM decreased briefly under the moving average for 200 weeks, an important level often as a major support area.

“Perhaps ETH has provided the sweetest gift from 2025, as it overwhelms 200 WMA in the early morning and a 0.618 FIB test,” another trader indicated, referring to the main decline levels that were characterized by the bottom of the previous session.

While PRICE has already regained 200 WMA, the previous cases that tested Ethereum this level in August and September 2024 led to a strong recovery.

However, the wider total scene still represents the risks. The last market has arisen by escalating the American tariff, which is a shift in the policy that briefly shook the global financial markets.

While diplomatic decisions have provided a temporary mitigation, the uncertainty, especially about possible revenge measures or additional economic restrictions. If global liquidity tightens or weakens risk morale, the ETHEREUM ability to maintain recovery may face challenges.

Another factor to see Ethereum’s ability to maintain market dominance for Bitcoin (BTC). The ETH/BTC ratio was on the declining direction, which reflects a shift in the investor’s preference towards bitcoin, which witnessed stronger institutional flows.

The upcoming Pectra upgrade from Ethereum can support the growth of the last gas growth in the ecosystem, but these improvements need translation into concrete benefits for users and developers to maintain demand for long -term.

Prediction at ETHEREUM price: Will the downward trend lead to the opposite?

She left the latest market reset, which removed billions of dollars in lever, ethereum in a more healthy position, but what happens after that depends on a mixture of factors – the promotions of accreditation, adoption, competition and economic conditions.

Ethereum 2025 predictions

The ETHEREUM price is expected to be formed in 2025 by its ability to expand efficiently while maintaining strong demand within its environmental system.

DigitalCoinprice Expectations On average $ 5,510, with a possible peak of $ 6,037, while Chandelli Take A more upward position, predicts an average of $ 6,124, a maximum of $ 7,194.

Joe, co -founder of Deagentai, told Crypto.News that the last basic procedure fits a wider historical style. “Short-term rupture signals-like a marketed signals on February 3-often require an accurate explanation.”

He referred to the historical settings from 2023 and 2024, which sparked sharp repercussions, indicating that merchants should monitor ETHEREM’s reaction to the main support levels.

Ethereum 2027 predictions

If ETHEREUM continues to lead the smart nodes and mature slicing solutions, ETH may see an increase in 2027.

DigitalCoinprice is an average of $ 9,580 with a peak at $ 1098, while Changelly draws a stronger look, and is expected on average $ 12,316, a maximum of $ 14527.

At the same time, Defi Growth, NFT Innovation, and ETHEREUM role in the real world code can provide a new request on ETH.

However, if the risk origins are facing conditions, the ETH price may face the opposite wind despite the basic improvements.

ETAREUM 2030 Prices predicts

Meanwhile, long -term predictions see that Ethereum reaches levels that seem far.

DigitalCoinprice is estimated at the average price of $ 14,829 in 2030, with a rise of $ 15.108, while Changelly provides more aggressive projection, predicts an average of 40,055 dollars and a potential climax of $ 47,066.

However, long -term predictions always come with risks. ETHEREUM faces competition from Solana and Avalanche networks and emerging Blockchain networks, all of which are aimed at offering lower fees and higher speeds.

Although ETH prediction models are still optimistic, it is necessary to combine technical expectations with the directions of the real world’s adoption before offering any long -term obligations. Thus, trade wisely and never invests more than you can lose.



https://crypto.news/app/uploads/2024/12/crypto-news-Ethereum-dollars-option02.webp

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button