Ethereum price may face a deeper correction despite BitMEX co-founder Arthur Hayes predicting a $5,000 rally before Solana (SOL) reclaims its $300 high.
Hayes made the claim in a March 24 post on X, arguing ETH would outperform SOL in the next leg of the bull market.
ETH was trading at $2,060 at the time, up 8% over the past week, while SOL hovered near $140, up 12%.
Hayes Bets on Ethereum Price Surge Over SOL Recovery
“ETH will reach $5,000 before SOL hits $300,” Hayes wrote, citing Ethereum’s potential for rapid gains.
The statement reflects a 150% upside for ETH and a 120% move for SOL from current levels.
Ethereum price remains 57% below its all-time high of $4,891 set on Nov. 16, 2023. Solana hit a record $294 on Jan. 19 and has since dropped 50%.
The Ethereum-Solana rivalry continues to draw comparisons in smart contract scalability.
Solana has gained traction in retail circles due to faster block finality and cheaper transactions.
While Hayes projects a bullish breakout, technicals paint a different picture.
Bear Flag Suggests Deeper ETH Drawdown Ahead
Ethereum has printed a classic bear flag pattern, often a precursor to further downside.
A breakdown below $2,000 could trigger a 40% price decline, targeting $1,230. The pattern emerges despite the asset’s recent recovery from its March 11 low of $1,750.
Ethereum’s bearish bias also stems from declining on-chain activity. Daily transaction volume has fallen to levels last seen in Oct. 2024.
According to CryptoQuant, average fees dropped to an all-time low of 0.00025 ETH ($0.46) on March 24.
That decline has reduced ETH’s burn rate. Data from Ultrasound.money shows Ethereum’s supply has become inflationary again, rising at 0.76% annually.
Daily issuance stands at 945,000 ETH per year, while the burn rate has dropped to just 25,000 ETH annually.
Analysts See Key Resistance Ahead for ETH
Analyst Bull said Ethereum price must flip $2,150 into support to unlock further gains. He noted,
“Until ETH breaks above this resistance, it’s crucial to remain cautious.”
Meanwhile, Andrew Crypto expects Ethereum price to hit $2,857 soon. He described current price action as a setup to trap “non-believers.”
Others remain more cautious. Crypto Ceaser said ETH appears “heavily undervalued” but needs more demand to rally. Analyst Jelle also flagged $2,200 as a critical level. He said,
Analyst Jelle pointed to $2,200 as a key level. “We’ll have a monster deviation if ETH reclaims that level.”
Ethereum Price Outlook Hinges on Network Demand
Ethereum’s price performance has historically aligned with periods of high network demand. Gas fees surged during the 2021 DeFi boom as block space filled up.
The current low-fee environment suggests declining user activity. That shift may weaken ETH’s recovery prospects despite bullish long-term forecasts.
While Hayes’ forecast stirs optimism, Ethereum price must first overcome bearish technicals and inflationary tokenomics before a $5,000 breakout becomes viable.
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