- Solana faces pressure as Ethereum’s Pectra upgrade drives a surge in transactions and market dominance.
- While Solana shows potential for a rally, Ethereum’s growth may delay a significant price surge for SOL.
The Solana (SOL) price faces increasing pressure as Ethereum’s (ETH) market dominance intensifies following the highly anticipated Pectra upgrade. While Ethereum’s network activity and usage soar, Solana risks losing momentum. Ethereum’s rise has been dramatic, with the altcoin’s price surging by nearly 20% in just two days after Pectra. This shift has drawn more traders to ETH, causing Solana’s market share to wane.
Ethereum’s Surge Post-Pectra
Ethereum’s Pectra upgrade has proven to be a game-changer. With its recent technical enhancements, Ethereum has seen a significant surge in transaction volumes, hitting a 1-year high of 1.5 million transactions in just 24 hours. This increase in activity has translated into a surge in spot inflows, with ETH attracting $248 million in the past day—three times the amount that Solana has seen. These factors have resulted in Ethereum outperforming Solana, sending the SOL/ETH ratio to its lowest level in nearly a month.
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Solana’s Struggle to Keep Up
As Ethereum strengthens its grip on the market, Solana is struggling to maintain its upward trajectory. While Solana has gained around 10% since the Pectra upgrade, it lags behind Ethereum’s impressive 20% rise. The SOL/ETH ratio has dropped significantly, breaking through key support levels. Market analysts predict that this trend could push the ratio even lower, potentially falling to 0.064 in the near term.
Traders are now shifting their focus to Ethereum, which seems poised to dominate the next altcoin season. As Ethereum continues to rise, Solana’s potential for a price rally beyond $180 seems increasingly distant, with many experts suggesting that ETH will lead the charge before any major movement in the Solana ecosystem.
Can Solana Defy the Odds?
Despite these challenges, Solana still has hope. The altcoin has formed an inverse head and shoulders pattern on its one-day chart, which could signal a bullish reversal. Solana’s recent breakout above a critical resistance level suggests a potential 42% rally toward $216. With strong support from the RSI and MACD indicators, Solana could defy the odds and push past $200, albeit at a slower pace than initially expected.
While Ethereum’s dominance post-Pectra is undeniable, Solana’s technical outlook remains promising. However, the competition between the two altcoins is fierce, and Ethereum’s increased market activity will likely delay any potential surge in Solana’s price. For now, Ethereum leads the charge, leaving Solana to fight for relevance in a rapidly shifting market.
