While Ethereum currently hovers around the $2,100 mark, experts are warning of a potential decrease to $1,200 in the coming weeks. According to data from Into The Block, nearly half of all ETH investors are currently underwater as the second-largest cryptocurrency struggles to recapture its former glory.

On the other hand, early-stage presale altcoins with strong utility like Solaxy are emerging as the next potential 10x projects. 

Ethereum’s Troubling Market Position

Ethereum began its downturn exactly one year ago when it reached a peak price of $3,915 on March 10, 2024. After a brief period of consolidation between $3,000 and $4,000, ETH lost critical support and fell to $2,400, where it has remained unable to reclaim its previous highs.

The bearish sentiment surrounding Ethereum is further compounded by the success of competing cryptocurrencies like XRP, which has gained 215% in the past 365 days. With 48% of ETH buyers currently at a loss, the overall outlook appears increasingly concerning for the pioneering smart contract platform.

Deteriorating Fundamental Outlook

Ethereum’s fundamental position in the crypto market has weakened considerably over the past year. The blockchain’s notorious high gas fees have continued to plague users, driving many cryptocurrency projects to seek alternative platforms with more affordable transaction costs. 

On top of that, the restructuring of Ethereum’s core development team has not yielded any benefits so far. 

This gradual exodus has particularly benefited Solana, which has emerged as a formidable competitor due to its impressive transaction speeds and minimal fees. As more innovative projects migrate to Solana’s ecosystem, Ethereum risks losing its dominant position as the go-to platform for decentralized applications and DeFi protocols.

Technical Analysis Signals Further Decline

A prominent analyst known as Nebraskangooner has identified a “double top” pattern in Ethereum’s chart, a reliable indicator of potential price reversals. This technical formation suggests ETH could fall toward the $1,200 level, representing a staggering 40% drop from current prices.

Source: Nebraskangooner’s X

The most alarming development in Ethereum’s price action was its close below the $2,400 level on the monthly timeframe, breaking its structural support and confirming it is no longer in an uptrend. With both challenging fundamentals and a confirmed bearish reversal, the upcoming months could present a significant downside for Ethereum.

Competition Heats Up From Unexpected Directions

ETH faces mounting pressure as competitors like XRP, Solana, Litecoin, and Dogecoin have pending ETF approvals, while Ethereum spot ETFs are already active. This regulatory development could further divert attention away from the once-dominant blockchain.

The continued growth of Solana has been particularly troublesome for Ethereum. While Ethereum was once the undisputed leader in smart contract functionality, Solana’s superior transaction capacity and lower fees have attracted a growing number of developers and users. Even major projects that were once loyal to Ethereum have begun developing on Solana, seeking to escape the prohibitive costs of operating on the Ethereum network.

However, numerous investors have turned to small-cap projects with strong utility due to their unmatched potential to skyrocket in the coming months.

New Altcoin Gains Traction as Solana Overtakes Ethereum

One such small-cap project with strong utility is Solaxy, the world’s first Solana Layer-2 scaling solution. While Solana is already highly scalable, it continues to experience congestion during periods of high network activity. Solaxy aims to address these limitations by making Solana cheaper, faster, and more reliable.

This development comes at a critical time when Ethereum’s upgrade roadmap has faced numerous delays, causing frustrated users to lose patience with the ongoing promises of improved performance. The successful implementation of Solaxy could further cement Solana’s position as the preferred platform for future blockchain innovation.

Solaxy has already raised $25.6 million in its public presale, with tokens currently priced at $0.001658. Presale participants can stake their tokens to earn a remarkable 159% APY, with over 7 billion tokens already staked. This impressive level of participation suggests serious market confidence in Solaxy’s vision to enhance the Solana ecosystem.

Industry expert Jacob Bury recently appeared on the 99Bitcoins YouTube channel, speculating that SOLX could see potential 10x gains. By improving the user experience on Solana, Solaxy could emerge as a lucrative Ethereum competitor this year. The presale price is set to increase throughout the campaign, creating a limited-time opportunity for early investors.