In 2025, the Ethereum ecosystem will grow and develop together with Solana, despite temporary difficulties. So says Michael van de Poppe, investment director at MN Capital.
Is #Ethereum dead?
That’s the prime question.
Trump has been buying mostly into $ETHinstitutions are building mostly on $ETHbut the price remains to be flat.
Confidence is getting lost.
My portfolio is mostly dedicated towards the Ethereum ecosystem.
What’s next?… pic.twitter.com/TtM5VICiSn
— Michaël van de Poppe (@CryptoMichNL) January 26, 2025
During January, the price of Ethereum fell by ~7%, despite the rise of many other assets.
Van de Poppe noted that it is difficult to watch other ecosystems flourish while your own position is not growing. In his opinion, most market participants feel the same way.
However, the expert emphasized the importance of strategy and patience:
In his opinion, 2025 will be positive for both the Solana ecosystem and Ethereum.
The expert believes that one of the arguments in favor of the growth of Ethereum will be low profitability and interest rates. High indicators are disadvantageous for Donald Trump, since this will increase his payments on government bonds.
The dollar index will be weaker. Van de Poppe pointed out a +1 correlation between the ETH/BTC pair and the strength of the US currency:
The expert suggests that under Trump there will also be more unrest in the world, which will push people to move from the traditional financial system to other asset classes, including cryptocurrencies.
However, the regulatory environment for cryptocurrencies is likely to become more favorable.
In his opinion, these fundamental factors are enough to talk about positive prospects for the second largest cryptocurrency by capitalization.
The expert added that he does not always have to be right in his assumptions – “the correct decisions will eventually cover the mistakes with a remainder.”
Additionally, historically, February and March have more often been positive periods for Ethereum.
In the entire history of the asset, there was only one February, during which the price of ETH fell – in 2018, a drawdown of 24% was recorded after an increase of over 200% over the previous three months. March is almost as favorable a period.
At the time of writing, ETH is trading at $3,050 after a significant drop – the price dropped by 8.4% in one day. According to CoinGecko, the coin’s capitalization is $366.9 billion.
Recall that on the eve of Trump’s inauguration, the Solana ecosystem experienced “the craziest weekend” in history.
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Source: Cryptocurrency
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