Ethereum Down 8% Last Month, Solana Up 9%: What Is Going On?
By Benzinga
Over the past 30 days, Ethereum (CRYPTO: ETH) is down 8%, while Solana (CRYPTO: SOL) is up 9.5%, sparking a debate among traders about this curious divergence.
What Happened: Crypto trader Javon Marks noted that Ethereum’s current price means a “hidden bull”, similar to the last time when it led to a surge over 162%. He predicts that “prices can still be setting up here for another massive continuation move!”
He went on to say that the $4723.50 target remains unchanged, with another 48% spike potentially in the making. He believes the Hidden Bull Divergence is one of multiple indicators of a bullish trend being intact.
Cypto chart analyst Ali Martinez noted that while the dip keeps dipping, Solana could be forming a bullish megaphone on the 4-hour chart. Based on technical analysis, the recent correction to the 61.8% Fibonacci level and oversold RSI suggest a buying opportunity.
He suggests placing a stop-loss around $156-$154 and taking profit between $200-$259.
Another crypto trade said that after Solana broke the last consolidation range it surged 600%.
Also Read: Ethereum ‘Monster Move’ Coming After Bitcoin Rally Is Done, Says Trader
Why It Matters: IntoTheblock data shows large transaction volume and daily active addresses dropped by 3.4% and 9.2%, respectively. However, transactions greater than $100,000 increased from 5,760 to 6,539.
Lookonchain data revealed that smart money purchased 4,000 ETH, worth $12.6 million. A trader who claims to have a win rate of 100% has purchased and sold Ethereum seven times between November 2022 and May 2024 for a total profit of more than $38 million.
The trader has purchased 17,012 ETH (worth $61 million) at an average price of $3,587 since May 29 and lost $7.6 million at the current price.
DefiLlama data shows Solana’s total value locked spiked to $5.08 billion as of Aug.2 from $1.42 billion as of Jan.1.
What’s Next: The influence of Bitcoin as an institutional asset class is expected to be thoroughly explored at Benzinga’s upcoming Future of Digital Assets event on Nov. 19.
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