This Chart Is Pro-Solana: Is It Time To Sell ETH For SOL?

This Chart Is Pro-Solana: Is It Time To Sell ETH For SOL?

For the last two years, Ethereum (ETH) has outperformed Solana (SOL), looking at the performance in the weekly chart. However, according to one technical analyst on X, this is about to change, especially considering the candlestick arrangement of the SOLETH chart on the weekly chart. 

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Sharing a screen grab, the analyst who goes by the handle “CryptoGodJohn” on X is optimistic, saying at spot rates, this can be the “right” time for traders to swap their ETH for SOL before the next leg up that will push Solana higher in the next two years.

Solana institutional investors VQEU4m

However, whether this will pan out remains to be seen. What’s evident is that the path of least resistance appears northwards, looking at price charts.

At the time of writing, SOL is up 71% versus ETH from June. Moreover, zooming in closer, SOLETH prices are teetering around critical resistance levels. Although trading volumes are relatively light and cannot be compared with those of late Q2 2023, sentiment is beginning to shift and favors SOL bulls. The sharp expansion in the year’s second half could be a statement. 

The SOLETH is at 0.0134 ETH level, a liquidation level that was last retested in July and January 2023. If buyers push harder, lifting the coin above the 0.0162 ETH level at the back of rising trading volumes, bulls of mid-July will be confirmed. In that case, SOL might stretch gains towards the 0.0265 ETH level and return to the September 2022 zone.

Even so, although traders are optimistic, it is not immediately clear how prices will react at spot levels. As it is, the SOLETH in the weekly chart is facing rejection. The present bar has a long upper wick, pointing to a possible sell-off in lower time frames. 

Will Solana Bulls Reverse The Post-FTX Collapse Free-Fall Of Q4 2022?

Additionally, SOLETH prices are still defined by the early November 2022 bear candlestick. The bear candlestick is wide-ranging and has high trading volumes, pointing to the rapid conversion of SOL to ETH in a moment of fear. 

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Around this time, FTX, a once-popular cryptocurrency exchange, collapsed. In 2021, FTX and Alameda Research, the trading wing linked to Sam Bankman-Fried, the CEO of FTX, invested $100 million in the Solana Foundation. 

It is said that FTX and Alameda Research controlled over 50 million SOL. The community feared that with FTX filing for bankruptcy, the over 50 million SOL would likely be sold to repay creditors.

In the sessions ahead, whether SOL will reverse the post-FTX collapse drop remains to be seen. Should it happen, SOL gains at least 50% versus ETH.

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