Ethereum is declining in favour among institutional investors, notably with Galaxy Digital selling off ETH for Solana. This strategic move comes amid Ethereum’s ongoing price drop of over 50% YTD, attributed to macroeconomic factors and reduced network activity. In contrast, Solana presents a competitive, cost-effective solution backed by new ETFs. However, some Ethereum investors continue to accumulate and maintain confidence in long-term prospects despite short-term volatility.
Ethereum (ETH) is witnessing a decline in interest from major institutional investors, with Galaxy Digital being a significant example. Recent on-chain data reveals that the hedge fund, spearheaded by Mike Novogratz, has migrated over 65,000 ETH, approximating a value of $105 million, to Binance, and in turn, acquired more than 750,000 Solana (SOL), worth about $98 million.
The strategic shift by Galaxy Digital comes in the wake of Ethereum’s ongoing price challenges and network congestion. Solana is gaining traction as a scalable and cost-effective alternative, especially following the introduction of spot Solana ETFs with staking options in Canada, which offer yield-generating opportunities compared to Ethereum’s inflationary environment.
Ethereum has performed poorly in 2025, with its price declining over 50% year-to-date from nearly $4,100 to around $1,600. Several factors contribute to this downturn, including Trump’s trade war policies leading to market instability and a subsequent decrease in Ethereum’s network activity amidst rising competition from Solana.
Despite these adverse trends, Ethereum’s bulls display a degree of resilience. On the ETH/USD chart, an ascending triangle formation on the four-hour timeframe suggests a potential bullish reversal. Following a momentary drop below the triangle’s trendline on April 21, buyers effectively reinstated support, reaffirming a price level above $1,600.
For Ethereum to challenge resistance levels, it must break above $1,635 and subsequently the 200-exponential moving average at approximately $1,756. Success in these areas could set the stage for an attempt to reach the $2,000 target before the month’s end.
Interestingly, not all large investors are fleeing from Ethereum; data indicates a notable increase in addresses holding between 1,000 and 10,000 ETH since early 2024. This surge highlights a growing accumulation trend, with their holdings rising above 13.5 million ETH in April 2025, signalling long-term confidence despite current market uncertainties.
