Ethereum (ETH) has been trailing behind Solana in the decentralized exchange (DEX) sector since September 2024. However, as per recent reports, Ethereum made its comeback to become the leading DEX chain yet again after seven months. This move precedes the much awaited Pectra Upgrade aimed at improving the Ethereum ecosystem.
Nonetheless, ETH is currently struggling due to the reciprocal tariffs stemming from Trump’s ‘Liberation Day’. But, with ‘Smart Money’ betting big on Ethereum, the leading altcoin by market cap could face a shift in the long-term price trajectory.
Ethereum Flips Solana to Become the Leading DEX Chain
According to recent reports, data on DefiLlama shows that after several months of struggle, Ethereum has finally overtaken Solana in DEX volume. Notably, Ethereum-based DEXs saw $64 billion in trading volume in March, outpacing Solana which recorded $52 billion.
Coming in third was BSC with $44 billion in the same period. The other chains followed as follows: Arbitrum ($19.47B), Base($18.195B), Sui ($5.89b), Avalanche($4.945B), Thorchain($4.693B), Hyperliquid L1($4.206B), Tron($3.49B). Besides the above, others recorded $24.999 billion.
The shift in DEX leadership from Solana to Ethereum in March happened as investors opted out of Solana. Particularly, interest in Solana memecoins decreased hence the decline in trading volume in Solana-based Raydium and Pump.fun.
ETH Continues to Struggle Despite Leading in DEX Volume
Despite outpacing Solana in DEX volume, Ethereum’s price is struggling. As per the daily chart on TradingView, ETH was trading at $1,786.11 down by over 5% on the day. With Ethereum on a downtrend as Trump’s reciprocal tariffs cause further turmoil, more price decline might be experienced in the price of ETH.
Furthermore, Ethereum risks breaching support at $1,768.83 which could see the price reach to October 2023 lows. The next support for ETH lies at $1,634.38 price level and a breach of this would lead to continuation of the bearish trend.
However, if Ethereum shows resilience around the current level, it could shift into an uptrend if bulls gain control. This would see ETH rise towards the resistance at $1,906.58. Converting this level into support would push the price towards next resistance at $2,081.90, hence confirming bullish momentum.
‘Smart Money’ Bet Big on ETH with Pectra Upgrade Around the Corner
Smart Money in crypto means institutional investors, hedge funds, and experienced traders that use their resources and knowledge to influence the market trend. As per a report by Forbes, these investors are betting big on ETH as they think the current price level is a great buying opportunity.
The analysis of data from March 1-25 by Forbes, further shows that these investors considered Ethereum oversold at $2,068 price level. Futures data clearly shows that ETH could rise to the $2,400 fueled by institutional investors.
The upcoming Pectra Upgrade which is scheduled for the end of this month, further gives ETH investors hope. This upgrade is set to revamp the ecosystem making it more attractive to investors.
Ethereum’s Pectra Upgrade; Expert Opinion
Dom Harz, the co-Founder of BOB, finds the ETH Pectra Upgrade quite revolutionary for the largest altcoin by market cap. In an exclusive insight offered to Blockchain News, Harz said; “Ethereum appears to be regaining its position as the number-two blockchain. What’s truly exciting, though, is how Pectra will intersect with the ongoing technical developments on Bitcoin, namely BitVM and Bitcoin DeFi.”
Additionally, the BOB co-founder believes that Ethereum is headed into a new phase. “As is always the case, this new phase, one of hopefully greater maturity and global adoption, will be driven by innovation. Technologically, we can see this maturity taking shape through developments like hybrid protocols that combine the strengths of both Ethereum and Bitcoin” Harz added.
With Smart Money backing up ETH, the price could surge. However, the recently imposed tariffs and ongoing ‘trade war’ could further limit the recovery of not only ETH but also the general crypto market.
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