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Solana vs Ethereum – Here are some key insights on the SOL/ETH ratio

Press Releases Crypto News AMB-Crypto Solana vs Ethereum – Here are some key insights on the SOL/ETH ratio

SOL underperformed ETH by 25% towards the end of January
However, the SOL/ETH ratio may be heading towards key inflection points

Solana [SOL] lost ground against Ethereum [ETH] in the last week of January. The altcoin retraced most of its gains post-TRUMP memecoin’s launch, dropping from $295 to nearly $220 on the charts.

The SOL/ETH ratio revealed that over the same period, SOL’s decline was over 25% relative to ETH. For the unfamiliar, the SOL/ETH ratio tracks SOL’s relative performance to ETH and by extension, the likely capital rotation between the two smart contract platforms.

SOL/ETH ratio eyes key inflection area

Source: SOL/ETH, TradingView

During the TRUMP craze, SOL outperformed ETH by nearly 50% in 2 days. However, the Trump mania didn’t last long, dragging SOL into its slump. Additionally, Chinese Deepseek AI fears and overvaluation concerns among U.S tech firms induced a broader market rout that didn’t spare SOL and the rest of crypto.

Interestingly, ETH held the weak market sentiment better than SOL. SOL underperformed ETH by 25% during the most recent market dump.

Worth noting, however, that the drop also marked SOL/ETH rejection at the upper channel, which has historically led to reversal. Now, the pair has retreated towards key inflection points at the 50-day EMA (moving average) and the channel lows.

If the channel holds, the pair could rebound at the lower support levels – A sign that SOL could regain ground against ETH over the next few days.

Besides, Solana has maintained its position against Ethereum on some fronts, especially after flipping it for the first time in Go to Source to See Full Article
Author: Benjamin Njiri

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