- Solana holds bullish ground despite the potential threat of dwindling investors amidst the ETH ETF approval.
- Solana has weakened against Ethereum on the price charts; however, SOL maintained a bullish sentiment and market structure.
- One Solana builder and user, Nigel Eccles, commented, ‘As a Solana maxi who has been building on Solana since 2021, hearing the ETH ETF news has been incredibly tough. Like I thought ETH was finished and Solana was the future.’
Discover how Solana maintains its bullish stance despite the looming threat of Ethereum ETF approval, and what this means for investors.
Solana’s Resilience Amidst Ethereum ETF Speculation
The ongoing speculation on Ethereum [ETH] ETF approval could threaten Solana [SOL] price prospects, at least in the short-term, per some market watchers. SOL has since become a target of social media dunk as the market increasingly adapts to the possibility of an ETH ETF. Despite this, Solana has shown resilience, maintaining a bullish sentiment and market structure.
Market Reactions and Performance Metrics
Following the ETF 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, per CoinMarketCap data. On a granular level, the SOL/ETH ratio showed that SOL weakened against ETH at the start of the week. The SOL/ETH ratio dipped by 19%, from 0.05 to 0.046, before attempting a rebound at press time. It meant that SOL shed 19% of its value against ETH.
Sentiment and Market Structure
Despite the slightly dismal performance against ETH and Eccles’s pessimistic view on ETH ETF’s impact on SOL’s prospect, market participants were still bullish on the home of meme coin trading, as shown by the positive Weighted Sentiment. Additionally, SOL maintained a bullish market structure on higher timeframe charts and could eye the $200 mark if the bulls defended the $180 as short-term support.
Conclusion
In conclusion, while the potential approval of an Ethereum ETF poses a short-term threat to Solana, the latter has shown remarkable resilience. The bullish sentiment among market participants and the positive market structure suggest that Solana could still achieve significant gains. Investors should keep a close eye on the developments and market dynamics to make informed decisions.
