Solana
Ethereum ETF: Bad News for Solana as Investors “Go All-In on ETH”
- Solana weakened against Ethereum on price charts
- However, SOL has maintained bullish market sentiment and structure.
Ongoing speculation about Ethereum [ETH] ETF approval could threaten Solana [SOL] price outlook, at least in the short term, according to some market observers.
SOL has since become a dunk target on social media as the market increasingly adapts to the possibility of an ETH ETF. A Solana builder and user, Nigel Eccles, commented,
“As a maxi Solana who has been building on Solana since 2021, hearing the news about the ETH ETF has been incredibly difficult. Like I think ETH is over and Solana is the future.
Eccles added that an ETH ETF approval would sanction ETH as a legitimate smart contract chain. As a result, he prefers to move there rather than stick to Solana,
“But it’s not too late to move to the government-sanctioned channel.” So from now on I’m throwing out my Solana bags and going all ETH’
Is ETH eclipsing SOL?
Following the ETF’s development, on Monday and Tuesday, SOL underperformed ETH on the price chart. On the weekly chart, performance stood at 29% and 25% for ETH and SOL, respectively, according to data from CoinMarketCap.
At a granular level, the SOL/ETH ratio showed that SOL weakened against ETH at the start of the week.
Source: SOL/ETH ratio, TradingView
For the uninitiated, the SOL/ETH ratio tracks the performance of SOL relative to ETH. A rising value indicates that SOL is outperforming ETH, while a falling ratio shows SOL weakening against ETH.
That said, the SOL/ETH ratio fell 19%, from 0.05 to 0.046, before attempting a rebound at press time. This meant that SOL lost 19% of its value against ETH.
So, the two red daily candlesticks showed that SOL underperformed ETH on Monday and Tuesday. At the time of writing, ETH was trading at $3.7k, up 2% in the last 24 hours, while SOL was trading at $180, down 0, 5% over the same period.
Despite the slightly dismal performance against ETH and Eccles’ pessimistic view on the ETH ETF’s impact on SOL’s prospects, market participants were still bullish on the meme coin trading, as The positive weighted sentiment shows this.
Source: Santiment
Additionally, SOL has maintained a bullish market structure on longer-term charts and could eye the $200 mark if the bulls defended $180 as short-term support.
That said, market participants were still bullish on SOL amid the ETH ETF speculation, contrary to Eccles’ negative view on the situation.