Ethereum Price Turns Bullish Amid Solana Meme Coin Controversy

Ethereum (ETH) price is turning bullish after weeks of trading below $3,000, a level it has not broken since February 2. The shift comes as capital appears to be flowing out of Solana and into Ethereum, with stablecoin inflows and rising TVL supporting its momentum.

Meanwhile, Ethereum’s price chart shows short-term EMAs moving higher, signaling a potential golden cross that could push ETH toward $3,020. If this trend continues, ETH could see a 22% rally, while a failed breakout may lead to another retest of key support levels.

Stablecoin Assets are Flowing From Solana to Ethereum

Amid controversy surrounding Solana meme coins, data from Lookonchain suggests capital is shifting toward Ethereum. In the past seven days, stablecoin holdings on Ethereum (USDC and USDT) increased by $1.1 billion, while $772 million in stablecoins exited Solana.

This comes after the launch of the LIBRA meme coin, which racked up many users and sparked concerns about the sustainability of the Solana ecosystem. With questions arising about key players like Jupiter, Pumpfun, and Meteora, investors appear to be rotating funds into Ethereum.

Stablecoins (USDC and USDT Change (7 Days) of Top 15 Chains. Source: L ookonchain

The data suggests that traders may be reducing exposure to Solana due to uncertainty around its meme coin scene and major protocols.

Meanwhile, Ethereum seems to be benefiting, attracting fresh liquidity that could fuel DeFi activity, trading, or new token launches. If this trend continues, Ethereum could see further inflows, while Solana may need to restore confidence to reverse the ongoing outflows.

Ethereum Network TVL Is On the Rise

This trend is also reflected in both chains’ Total Value Locked (TVL). Solana’s TVL peaked at $14.2 billion on January 18 but has been steadily declining since then.

In the last four days alone, it dropped from $10.95 billion to $10.5 billion, indicating capital outflows from Solana projects.

Solana TVL. Source: DeFiLlama.

TVL measures the total assets locked in a blockchain’s DeFi protocols, representing liquidity and overall activity. A rising TVL suggests growing confidence and participation, while a decline indicates capital leaving the ecosystem.

Meanwhile, Ethereum TVL has been increasing, rising from $59.66 billion on February 2 to $63.7 billion by February 16.

Ethereum TVL. Source: DeFiLlama.

This shift suggests that investors are favoring Ethereum over Solana, reinforcing the stablecoin data showing capital rotation.

If this trend continues, Ethereum could strengthen its position, while Solana may struggle to regain lost liquidity.

ETH Price Prediction: A Potential 22% Upside

Ethereum price chart shows its EMA lines are still bearish, with short-term EMAs below long-term ones. However, short-term lines are moving upward, and a golden cross could form soon.

If that happens, ETH could test resistance at $3,020, breaking above $3,000 for the first time since February 2. Continued momentum could push ETH up to $3,442, marking a potential 22% rise from current levels.

Additional external factors in the short term, such as the upcoming Pectra upgrade, could also support this upward trend.

ETH Price Analysis. Source: TradingView.

On the downside, if the downtrend strengthens, Ethereum could retest support at $2,551.

Losing this level might trigger a deeper drop to $2,160. Bears need to break key support zones, while bulls must sustain momentum for a breakout above resistance.