For the past two years, Ethereum (ETH) has consistently outperformed Solana (SOL) in the weekly chart. However, a technical analyst named “CryptoGodJohn” on X believes this trend is about to change. The analyst points to the SOLETH chart’s candlestick arrangement on the weekly chart, indicating a potential shift in favor of SOL.
Is It Time to Swap ETH for SOL?
CryptoGodJohn suggests that now might be the opportune moment for traders to consider swapping their ETH for SOL, anticipating a significant upward movement in SOL’s price over the next two years. The path of least resistance, as indicated by the price charts, seems to be in favor of SOL.
Current Market Analysis
As of the latest data, SOL has experienced a 71% increase in value compared to ETH since June. SOLETH prices are hovering around crucial resistance levels, signaling a potential bullish trend. If buyers can drive the coin above the 0.0162 ETH level with rising trading volumes, it might confirm the bullish sentiment, potentially pushing SOL’s gains towards the 0.0265 ETH level and back to the September 2022 zone.
Challenges and Uncertainties
Despite the optimism among traders, it’s essential to note that the market at spot levels remains uncertain. The weekly chart for SOLETH shows signs of potential rejection, with the present bar displaying a long upper wick, indicating a possible sell-off in lower time frames.
The Impact of FTX Collapse
Notably, the SOL market was significantly affected by the collapse of FTX, a prominent cryptocurrency exchange. FTX and Alameda Research, associated with Sam Bankman-Fried, FTX’s CEO, had invested $100 million in the Solana Foundation in 2021. With FTX filing for bankruptcy, concerns arose within the community regarding the potential sale of over 50 million SOL to repay creditors. The outcome of this situation remains uncertain and could impact SOL’s performance against ETH.
While the future performance of SOL against ETH remains uncertain, traders should carefully monitor market trends and be prepared for possible shifts. The decision to swap ETH for SOL should be made based on thorough analysis and consideration of the current market dynamics.