Ethereum Pushes Past $3,770 as Capital Rotates into DeFi and Solana
Ethereum (ETH) extended its rally on Monday, climbing above $3,770 as investor appetite shifted from bitcoin (BTC) into altcoins and decentralized finance (DeFi) protocols. While ETH remains roughly 25% below its all-time high, analysts see the current momentum as a potential setup for a continued breakout.
Bitcoin, by contrast, traded largely flat above $117,400, with its recent strength giving way to sector rotation. Altcoins outpaced the broader market, led by Solana (SOL), which surged more than 8% to a four-month high of $203 following excitement over the launch of Jito’s Block Assembly Marketplace (BAM).
The shift reflects a growing appetite for high-beta digital assets. DeFi tokens including Uniswap and Aave gained 20%–30% over the past week, supported by rising capital inflows and optimism around U.S. legislation such as the GENIUS Act that may pave the way for clearer crypto regulation.
“Ethereum is clearly benefiting from sector rotation,” said Jeff Mei, COO at BTSE. “As bitcoin consolidates, ETH is attracting inflows from institutional and retail investors alike, especially as spot ETH ETFs continue gaining traction.”
Spot ETH ETFs have recorded steady inflows in recent weeks, signaling growing institutional interest. Analysts suggest Ethereum is primed to mirror bitcoin’s earlier run, with some forecasting ETH to outperform BTC over the coming weeks.
“We’re beginning to see positioning for an ETH-led rally,” said Nassar Al Achkar, chief strategy officer at CoinW. “The upside scenario could see ETH closing the gap toward its all-time high as demand accelerates.”
On the macro front, elevated bond yields and rising inflation breakevens are fueling broader risk-on sentiment. Looser financial conditions are also playing a role in crypto’s upward momentum, according to analysts.
“The reflation trade is gaining ground,” noted Augustine Fan, head of insights at SignalPlus. “Traders are leaning into risk, and crypto stands to benefit.”
While profit-taking hit some assets—such as XRP, DOGE, ADA, and BNB—Ethereum and Solana are now emerging as leading indicators of this next leg in the market cycle.
