Ethereum News – Ethereum Surges 40% in a Month: What’s Driving the Unexpected Rally?

Ethereum News – Ethereum Technical Analysis: Can ETH Break $2,650 Resistance?

Ethereum News – As the Asian trading session begins, Ethereum (ETH) is maintaining its position above $2,500, currently down marginally by 0.4%. Despite the slight dip, ETH has delivered an impressive 40% month-over-month gain, outperforming most assets except for notable memecoins like PEPE ($0.0412453) and DeFi lending protocols such as AAVE ($272.04). This strong performance has helped push Ethereum’s Total Value Locked (TVL) beyond the $60 billion mark, signaling robust ecosystem growth.

Bizantine Capital’s Co-founder Zheng remains bullish on Ethereum, citing the recent Pectra upgrade as a catalyst for superior scalability compared to competitors like Solana. Zheng also points out Ethereum’s consistently lower inflation rate relative to Bitcoin (BTC, $105,773.48), forecasting potential dominance as the leading layer-one blockchain.

“Ethereum may be reaching an inflection point where its scalability and inflation advantages accelerate growth,” Zheng noted in a statement to CoinDesk. “This could make 2025 a very interesting year for ETH.”

However, optimism is tempered by market caution, as Polymarket traders assign only a 26% probability for ETH to surpass its all-time high of $4,868 set in November 2021.

Institutional Demand Grows as Exchange Balances Hit Seven-Year Lows

On-chain data highlights a surge in institutional interest, with Ethereum’s exchange balances plummeting to levels not seen in seven years. Additionally, ETH-focused investment products are experiencing significant inflows, reflecting a pattern of long-term accumulation among large investors.

This trend contrasts with broader market volatility, suggesting institutions may be positioning for sustained growth in Ethereum’s price and adoption.

Decentralized AI Tokens Face Adoption Challenges Despite Market Hype

While Artificial Intelligence (AI) tokens have emerged as a top-performing category with a market cap exceeding $27 billion (per CoinGecko), adoption hurdles remain significant. Analyst Teng Yang from Chain of Thought highlights the struggle of Decentralized Compute Networks (DCNs) to compete with centralized cloud giants like AWS and Google Cloud.

Despite offering cost-effective GPU resources, most decentralized platforms, including Akash and Prime Intellect, rank near the bottom of Semianalysis’ March 2025 GPU cloud provider list. Many DCNs fail to deliver essential enterprise-grade features such as:

• Predictable job routing
• Efficient data transfers
• Built-in fault tolerance

Moreover, lacking key security certifications like SOC2 or ISO 27001, these networks face reliability and trust issues, compounded by clunky user interfaces and confusing payment systems.

Economically, decentralized platforms depend heavily on temporary token incentives, risking collapse when emission rates slow down. For instance, Aethir’s token surged 70% last month, intensifying inflationary pressures on cloud services priced in ATH tokens.

Yang argues that decentralized compute doesn’t need to fully replace centralized providers but must reach a threshold of stability, cost-efficiency, and usability to compete meaningfully. Until then, the expansion of decentralized AI will largely rely on centralized infrastructure.

News Roundup: Trump Organization Denies $TRUMP Wallet Affiliation, Revolut Eyes Crypto Derivatives

• The Trump Organization has disavowed any connection to the newly launched $TRUMP Wallet, despite promotional claims linking it to the former president. The wallet’s website remains active, inviting users to a waitlist but lacking concrete release details. This episode adds to Trump’s ongoing, often controversial involvement with crypto ventures like World Liberty Financial and meme coins such as Trump Coin and Melania Coin.
• Revolut is exploring entry into the crypto derivatives market, evidenced by a job posting for a general manager to oversee the launch. This follows Revolut’s earlier rollout of a professional crypto exchange across the UK and EU. The UK derivatives space is gaining momentum with platforms like GFO-X, the first FCA-regulated derivatives venue, and Galaxy Digital’s UK subsidiary, approved to compete under FCA rules.

Market Snapshot: BTC, ETH, Gold, Nikkei, and S&P 500 Movements

• Bitcoin (BTC) climbed 2% above $105K, bolstered by MicroStrategy’s aggressive plan to acquire $84 billion worth of BTC, despite ongoing geopolitical uncertainties.
• Ethereum (ETH) confirmed a clear uptrend, with strong volume surges, facing resistance near $2,651 and holding support between $2,618-$2,620.
• Gold dropped 0.51% to about $3,356/ounce, pressured by a recovering dollar and rising US job openings, encouraging risk-on asset rotation.
• Japan’s Nikkei 225 rose 0.83%, leading Asia-Pacific markets higher, buoyed by Nvidia-driven Wall Street tech rallies.
• The S&P 500 gained 0.58% to 5,970.37, supported by Nvidia’s gains and optimism over US trade deals, with Deutsche Bank raising its year-end target to 6,550.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.