Cryptocurrency Winter: ETH and SOL Plummet to the Bottom, Trump's Tariffs and U.S. Stock Market Storm Intensify Market Panic
In April 2025, the cryptocurrency market faced an unprecedented "cold wave".
Ethereum (ETH) plummeted from a peak of $4000 at the beginning of the year to $1400, a decline of 65%;
while Solana (SOL) fell from $290 to below $100, a decline of over 65%.
1. Current Situation of Plummeting: The "Free Fall" of ETH and SOL
1. ETH: Stricter U.S. Regulation, Institutional Investors Losing Patience with the Slow Progress of ETH's Technical Upgrades (such as Sharding and Scaling), Further Accelerating Capital Withdrawal.
2. SOL: Crisis of Network Trust
Solana was once hailed as the "Ethereum Killer", but its high-performance promises have been called into question due to frequent network congestion.
2. Internal Causes Analysis: Technical Defects and Deteriorating Market Sentiment ETH's Technical Bottlenecks and Regulatory Pressure.
Although Ethereum continues to push for upgrades, the impact of Layer 2 solutions has not met expectations, and transaction fees and speed still trouble users.
At the same time, the U.S. Securities and Exchange Commission (SEC) has intensified scrutiny of cryptocurrencies, and rumors of ETH being classified as a potential "security" have panicked investors.
The "Collapse of Trust" in SOL and Competitive Disadvantages
Solana's network stability issues have long remained unresolved, and technical indicators show that SOL's RSI (Relative Strength Index) continues to decline, with SMA moving averages showing death crosses, leading to a strong bearish market sentiment.
3. External Causes Resonance: Trump's Tariffs and U.S. Stock Market Crash Trigger Systemic Risks
1. Trump's 100% Tariff Increase on China: Global Supply Chain Shock
2. U.S. Stock Market Plunge Drags Down Risk Assets
At the beginning of April, U.S. inflation data exceeded expectations, hopes for Fed rate cuts were dashed, and all three major U.S. stock indices fell by over 10% in a single week.
Cryptocurrencies, as high-risk assets, were the first to be impacted, with some investors selling virtual assets to offset stock market losses, creating a "liquidity squeeze".
If Ethereum can complete its upgrades on schedule and attract institutional capital back, its ecosystem (such as DeFi, NFT) may be reactivated.
Historical data shows that Bitcoin's ETF launch led to a price peak two months later; ETH may replicate this path.
Solana, on the other hand, needs to resolve its network performance issues and regain institutional trust.
On-chain analysts suggest that if it can hold the key support level of $85, it may rebound to $150 in the second half of the year; otherwise...
What do you all think? I choose SOL.
In April 2025, the cryptocurrency market faced an unprecedented "cold wave".
Ethereum (ETH) plummeted from a peak of $4000 at the beginning of the year to $1400, a decline of 65%;
while Solana (SOL) fell from $290 to below $100, a decline of over 65%.
1. Current Situation of Plummeting: The "Free Fall" of ETH and SOL
1. ETH: Stricter U.S. Regulation, Institutional Investors Losing Patience with the Slow Progress of ETH's Technical Upgrades (such as Sharding and Scaling), Further Accelerating Capital Withdrawal.
2. SOL: Crisis of Network Trust
Solana was once hailed as the "Ethereum Killer", but its high-performance promises have been called into question due to frequent network congestion.
2. Internal Causes Analysis: Technical Defects and Deteriorating Market Sentiment ETH's Technical Bottlenecks and Regulatory Pressure.
Although Ethereum continues to push for upgrades, the impact of Layer 2 solutions has not met expectations, and transaction fees and speed still trouble users.
At the same time, the U.S. Securities and Exchange Commission (SEC) has intensified scrutiny of cryptocurrencies, and rumors of ETH being classified as a potential "security" have panicked investors.
The "Collapse of Trust" in SOL and Competitive Disadvantages
Solana's network stability issues have long remained unresolved, and technical indicators show that SOL's RSI (Relative Strength Index) continues to decline, with SMA moving averages showing death crosses, leading to a strong bearish market sentiment.
3. External Causes Resonance: Trump's Tariffs and U.S. Stock Market Crash Trigger Systemic Risks
1. Trump's 100% Tariff Increase on China: Global Supply Chain Shock
2. U.S. Stock Market Plunge Drags Down Risk Assets
At the beginning of April, U.S. inflation data exceeded expectations, hopes for Fed rate cuts were dashed, and all three major U.S. stock indices fell by over 10% in a single week.
Cryptocurrencies, as high-risk assets, were the first to be impacted, with some investors selling virtual assets to offset stock market losses, creating a "liquidity squeeze".
If Ethereum can complete its upgrades on schedule and attract institutional capital back, its ecosystem (such as DeFi, NFT) may be reactivated.
Historical data shows that Bitcoin's ETF launch led to a price peak two months later; ETH may replicate this path.
Solana, on the other hand, needs to resolve its network performance issues and regain institutional trust.
On-chain analysts suggest that if it can hold the key support level of $85, it may rebound to $150 in the second half of the year; otherwise...
What do you all think? I choose SOL.