That climb is typical of events that can cause Dana 35 breakages, especially if there was any axle bounce going on. It's simply not a robust axle, its smallish diameter 27 spline axle shaft likely snapped right at where it enters the differential's side gears which is at the base of the splines.
These photos typical Dana 35 breakages...
http://www.billhughes.com/dana35c/
Replacing the entire axle with a used TJ Dana 44 would be optimal and the easiest. The issue is those TJ Dana 44 axles have become precious commodities and aren't always priced reasonably. Other possibilities include installing a Super 35 kit from
www.revolutiongear.com as sold by
www.4lowparts.com or adapting a Ford 8.8 axle which is not easy or cheap either unless you are a fair fabricator and know how to weld and get it installed on your own.
This photo shows the stock Dana 35 axle shaft, 1.18 inches in diameter with 27 splines (left). The Super 35 shaft in comparison on the right is 1.31 inches in diameter and has 30 splines for a strength gain of over 35 percent.
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