Raydium’s (RAY) price has rebounded more than 10% after the Monday morning crash, pushing its market cap close to $2 billion. Technical indicators are now showing signs of a potential bullish continuation.

RAY’s revenue and trading volume remain among the highest, reinforcing its position as a leading Web3 protocol. Whether RAY can sustain this momentum or face another downturn will depend on its ability to hold key support levels and confirm an uptrend.

Raydium Is One of The Biggest Blockchain Applications In The Market

Raydium has emerged as one of the top revenue-generating blockchain protocols, bringing in over $42 million in the last seven days. This puts it ahead of major players like Circle, Uniswap, and even Ethereum in terms of earnings.

Over the past year, Raydium has generated nearly $1 billion in revenue, coming remarkably close to Solana’s $965 million.

In terms of trading volume, Raydium has handled around $3.4 billion in the last 24 hours and $21 billion over the past week, solidifying its place as one of the most used Web3 projects ever.

RAY RSI Is Recovering After Hitting Oversold Levels

Raydium’s RSI is currently at 53.87, rising sharply from 20.8 just two days ago. The Relative Strength Index (RSI) measures momentum by tracking recent price movements, with values below 30 indicating oversold conditions and above 70 signaling overbought levels.

The recent jump suggests that buying pressure has increased, bringing Raydium out of oversold territory and into a more neutral range.

At 53.87, Raydium’s RSI is neither strongly bullish nor bearish, leaving room for further price movement in either direction. Notably, RAY hasn’t touched the 70 levels, which would indicate overbought conditions, since January 19.

This suggests that while the asset has seen renewed strength, it hasn’t yet entered a strong bullish phase. The next trend confirmation will depend on whether the RSI continues to rise or stall at current levels.

RAY Price Prediction: A Further 33% Upside?

Raydium’s price recently corrected by 34% between January 30 and February 3 but has since rebounded nearly 30%. Its EMA lines suggest that a golden cross, where the shortest-term moving average crosses above the longer-term ones, could be forming soon.

If this happens, RAY price could continue its recovery, with a strong uptrend potentially pushing it to retest $7.92. A breakout above that level could lead to further gains, with $8.7 as the next major target, representing a possible 33% upside.

However, if RAY fails to maintain its momentum, it could test support at $5.85, with a breakdown leading to $5.36. A deeper sell-off could see it drop further to $4.71 or even $4.14, marking its lowest level since January 13.

Solana (SOL) price is up 10% on Tuesday, February 4, as it attempts to hold above $200. Its market cap has recovered back above $100 billion. Despite this rebound, trading volume has dropped by roughly 40%, now sitting at $8.9 billion over the same period.

Meanwhile, SOL whale activity is showing signs of recovery after a recent decline, and key trend indicators remain undecided on the asset’s next move. Whether Solana can sustain its momentum or face renewed downside pressure will depend on how it interacts with critical resistance and support levels in the coming days.

Solana Whales Are Recovering From A Recent Fall From Its All-Time High

The number of Solana whales – addresses holding at least 10,000 SOL – has rebounded to 5,120, up from 5,096 just four days ago.

While it remains below the all-time high of 5,167 recorded on January 25, the recent increase suggests continued accumulation by large holders. This comes after a rapid surge from 5,054 on January 17, highlighting strong interest from big players in the market.

Tracking SOL whales is crucial because their buying and selling activity can significantly impact price trends. Large holders often signal confidence in the asset, and their accumulation can indicate bullish sentiment.

While the number is slightly below its peak, the fact that it is recovering suggests that major investors are still engaged, which could support SOL price stability or even future upward momentum.

Solana is Experiencing a Weak Downtrend Trend

Solana’s DMI chart shows its ADX at 33.5, which is a rise from 10.5 just four days ago. While it peaked at 36.2 a day ago, its current level still indicates a strengthening trend.

The ADX (Average Directional Index) measures trend strength, with values above 25 suggesting a strong trend and above 50 indicating an extremely strong one. The recent increase signals growing momentum, but the direction of the trend remains uncertain.

Currently, Solana +DI is at 14.7, up from 6 a day ago, while -DI has dropped to 26.99 from 39 two days ago. The +DI represents bullish strength, while the -DI reflects bearish pressure.

Although bearish momentum is weakening, bullish momentum is still relatively low, meaning the trend remains undefined. If +DI continues rising and crosses above -DI, it could signal a shift toward an upward trend, but for now, the market remains indecisive.

SOL Price Prediction: Will Solana Stay Above $200?

The price of Solana is currently trading between $222.8 and $191, with its EMA lines showing short-term moving averages below the long-term ones.

However, the downtrend isn’t that strong anymore, leaving the trend direction uncertain. SOL price is in a key range where a breakout in either direction could define the next major move.

If SOL price regains its uptrend and breaks the $222.8 resistance, it could climb toward $244.99, with a strong rally potentially pushing it back to $271.

On the other hand, if a downtrend forms and support at $191.69 is lost, the next target would be $181.91, with further downside possibly taking it as low as $168.77.

Ethereum has long been the undisputed king of smart contract platforms. However, as 2025 progresses, cracks in its foundation have begun to show.

The Ethereum Foundation (EF), a nonprofit organization tasked with stewarding the blockchain’s development, is facing one of its most turbulent moments yet.

EF’s Leadership Turmoil: Conflict of Interest and Transparency Issues

Leadership shakeups, internal conflicts, and a controversial $165 million DeFi investment have raised concerns over Ethereum’s governance and neutrality. These struggles have come at a critical moment. The crypto market is changing, and new contenders are emerging as serious challengers for Ethereum’s position as the second-largest cryptocurrency.

Vitalik Buterin recently confirmed a restructuring within the Ethereum Foundation to address long-standing governance issues. This overhaul was prompted by controversies such as the EigenLayer scandal, where two Ethereum Foundation researchers, Justin Drake, and Dankrad Feist, took highly lucrative advisory roles with EigenFoundation.

“What is a core EF contributor doing when he accepts roles on projects that have conflicted incentives with Ethereum? Where’s the credible neutrality,” eMon, a popular user on X, quipped.

EigenLayer, a restaking protocol, allows users to leverage their liquid-staked ETH on other networks. Beyond increasing capital efficiency, this raises concerns about Ethereum’s security model. When crypto trader Cobie leaked that Drake and Feist had received millions in vested EigenLayer’s EIGEN tokens, the community reacted with outrage.

Critics saw this as a clear conflict of interest, with Ethereum insiders profiting from their influence over protocol development. The backlash led the Ethereum Foundation to introduce a formal conflict of interest policy in May 2024.

Drake eventually resigned from EigenLayer, but Ethereum’s credibility had already been damaged. Many questioned whether Ethereum’s researchers and decision-makers could be trusted to act in the network’s best interest rather than their financial gain.

Ethereum Foundation’s $165 Million DeFi Investment

As the EigenLayer controversy unfolded, the Ethereum Foundation made another eyebrow-raising decision. It committed 50,000 ETH (approximately $165 million) to DeFi. The move aimed to replenish EF’s treasury, which had shrunk by 39% over the past three years. The EF allocated the funds through a 3-of-5 multi-signature wallet and deployed them into lending protocols like Aave and Lido.

According to data on Spotonchain, the treasury held $752 million as of this writing.

The Ethereum Foundation avoided staking its ETH for years due to concerns about regulatory risks and network neutrality. However, with ETH struggling against Bitcoin and Ethereum losing ground in developer and user activity and market share, EF decided to take a more aggressive financial approach.

Some see this as a smart move to generate passive income, while others believe it signals desperation amid Ethereum’s declining dominance.

Gas Limit Debate: Scaling Solution vs. Network Risk

At the same time, Ethereum is undergoing another critical debate around increasing its gas limit. The Ethereum gas limit has surpassed 32 million, with nearly 52% of validators signaling support for an increase.

The argument is that raising the gas limit would lower transaction fees and improve network efficiency.

“This will be the first increase under proof of stake. Because PoS is so much more decentralized than obsolete tech like PoW, it took longer to coordinate.  Who will be the hero to put us over the top,” posed Evan Van Ness, the former Consensys director of operations.

However, not everyone agrees. Critics warn that increasing the gas limit too aggressively could destabilize Ethereum. Specifically, they say it would make it harder for smaller validators to participate, potentially leading to further centralization.

Meanwhile, Ethereum co-founder Vitalik Buterin calls for the Pectra Fork, which promises better network usability.

“…IMO we should make the blob target also staker-voted so that it can increase in response to technology improvements without waiting for hard forks,” Buterin shared on X.

With Ethereum already grappling with restaking risks, conflicts of interest, and governance disputes, the gas limit debate adds another layer of uncertainty to the blockchain’s future.

Ethereum vs. the Competition: Possibilities of a New #2

With ETH underperforming compared to other assets, investors are looking at potential challengers. Solana, for example, has seen a resurgence, attracting developers and users with its low fees and high-speed transactions. Nevertheless, IntoTheBlock’s senior research analyst Juan Pellicer says Solana still has a long way to go before it can dethrone Ethereum.

“While Solana may continue to grow and potentially challenge Ethereum in specific niches, overcoming Ethereum’s entrenched position as the dominant platform in the immediate future is still unlikely, though the competitive landscape is dynamic and evolving,” Pellicer told BeInCrypto in an exclusive. 

Meanwhile, Binance Smart Chain (BSC), Avalanche (AVAX), and even modular blockchain solutions like Celestia (TIA) are gaining traction. Against this backdrop, the question is no longer whether Ethereum will remain the dominant smart contract platform. Instead, it is whether it can maintain its position as the second-largest cryptocurrency.

If Ethereum continues to struggle with governance issues and scalability challenges while competitors offer better efficiency and user experiences, its place in the market could be at risk. Given all these developments, should investors still consider Ethereum in 2025?

Despite its ongoing issues, Ethereum remains the most decentralized and widely adopted smart contract platform. Its strong developer ecosystem, deep liquidity, and established infrastructure give it a significant edge. The recent leadership restructuring, the conflict of interest policy, and treasury management changes indicate that EF is taking steps to correct its course.

However, the risks are undeniable. Ethereum is at a crossroads, where its next moves will determine whether it can maintain its dominance or if a new market leader will dethrone it. Investors should weigh these factors carefully, balancing Ethereum’s strong fundamentals with the uncertainty surrounding its governance and future development.

Nevertheless, Ethereum is changing, and the community must decide whether these changes are for the better or signal the beginning of its decline.

BeInCrypto data shows ETH was trading for $2,812, up by almost 9% since Tuesday’s session opened.