The cryptocurrency market has been buzzing with activity as Ethereum (ETH) recorded a staggering 60% price surge within a single week, a movement that has left Solana (SOL) holders watching from the sidelines with mixed emotions. According to data from CoinGecko, ETH surged from a low of approximately $2,400 on May 30, 2025, to a high of $3,840 by June 5, 2025, marking a rapid ascent that has outpaced many other major cryptocurrencies. This dramatic rally, as highlighted in a recent tweet by Milk Road on June 5, 2025, has sparked discussions among traders about the comparative performance of layer-1 blockchain tokens like SOL, which has seen more modest gains of around 8% over the same period, moving from $165 to $178. The disparity in performance between ETH and SOL raises critical questions for traders: is this an opportunity to pivot into ETH, or does SOL present a potential catch-up trade? Beyond price action, Ethereum’s rally coincides with significant developments in its ecosystem, including increased staking activity and anticipation around upcoming network upgrades. Meanwhile, broader market sentiment, influenced by macroeconomic factors and stock market stability, has also played a role in fueling ETH’s momentum, as investors appear to favor established assets during periods of uncertainty in traditional markets like the S&P 500, which remained relatively flat with a 0.2% gain for the week ending June 5, 2025, per Yahoo Finance reports.

From a trading perspective, ETH’s 60% pump offers multiple opportunities and risks for crypto investors, particularly those holding SOL or considering cross-market plays. The ETH/USDT pair on Binance saw trading volume spike by 120% week-over-week, reaching $18.5 billion in the 24 hours leading up to June 5, 2025, at 12:00 UTC, indicating strong retail and institutional interest. In contrast, SOL/USDT volume on the same platform increased by a more muted 35%, totaling $2.1 billion over the same period, suggesting that SOL has yet to capture the same level of market fervor. For traders, this divergence could signal a potential rotation of capital into ETH, but it also highlights SOL as a possible undervalued asset with room for growth if momentum shifts. Additionally, the correlation between crypto and stock markets remains relevant here—while the Nasdaq Composite gained 1.5% for the week ending June 5, 2025, per Bloomberg data, ETH’s rally appears less tied to tech stock movements and more driven by on-chain activity, such as a 25% increase in Ethereum’s total value locked (TVL) in DeFi protocols, reaching $60 billion as of June 5, 2025, according to DefiLlama. This suggests that crypto-specific catalysts are at play, potentially offering traders unique entry points into ETH or related tokens over stock-driven plays.

Diving into technical indicators, ETH’s Relative Strength Index (RSI) on the daily chart hit 78 as of June 5, 2025, at 14:00 UTC, signaling overbought conditions that could precede a short-term pullback, per TradingView data. Meanwhile, SOL’s RSI sits at a more neutral 55, indicating potential for upward movement if buying pressure increases. On-chain metrics further underscore ETH’s strength—Glassnode data shows a 15% uptick in active Ethereum addresses, reaching 1.2 million on June 4, 2025, while SOL’s active addresses grew by only 5% to 800,000 over the same timeframe. Trading volume correlations also reveal that ETH/BTC pair activity on major exchanges like Coinbase spiked by 80% week-over-week as of June 5, 2025, reflecting ETH’s outperformance against Bitcoin, which gained just 10% over the same period. For stock market correlations, the flat performance of crypto-related stocks like Coinbase Global (COIN), which saw a mere 0.5% increase to $225.30 by June 5, 2025, per Google Finance, suggests limited institutional spillover from ETH’s rally into equities. However, this could also indicate that institutional money is staying within crypto markets, potentially benefiting altcoins like SOL if sentiment shifts. Traders should monitor key ETH support levels around $3,500 and SOL resistance at $185 for actionable setups in the coming days.

Lastly, the interplay between stock and crypto markets remains a critical factor for traders. While ETH’s rally appears largely independent of stock market movements, the stability in indices like the Dow Jones, up 0.3% for the week ending June 5, 2025, per MarketWatch, reflects a risk-on environment that could indirectly support further crypto gains. Institutional flows, as evidenced by a 30% increase in Ethereum ETF inflows totaling $500 million for the week ending June 5, 2025, according to CoinShares, highlight growing traditional finance interest in ETH, which may pressure altcoins like SOL to compete for capital. Traders can leverage this dynamic by watching for correlated moves in crypto-related equities and ETFs as leading indicators of broader market sentiment, while focusing on on-chain data for precise entry and exit points in ETH and SOL trades.

FAQ:
What triggered Ethereum’s 60% price surge in early June 2025?
Ethereum’s price surge from $2,400 on May 30, 2025, to $3,840 by June 5, 2025, was driven by a combination of on-chain activity, including a 25% increase in total value locked in DeFi protocols to $60 billion, and heightened staking interest, alongside broader market risk-on sentiment.

Is Solana a good buy after Ethereum’s rally as of June 5, 2025?
Solana’s more modest 8% gain from $165 to $178 over the same week, coupled with a neutral RSI of 55 and lower trading volume growth of 35% to $2.1 billion, suggests it may be undervalued relative to ETH, presenting a potential catch-up trade if momentum shifts.