Ethereum and Solana have plotted drastically divergent trajectories over the past week or so, causing investors eager to shift capital away from Bitcoin (CRYPTO: BTC) to sit up and take notice.
What happened: Solana, often touted as the “Ethereum Killer,” spiked over 13% in the last seven days, faring among the top weekly gainers. In contrast, Ethereum, with a much bigger market capitalization, slipped 4.63% in the said period.
In fact, in ETH’s terms, SOL was currently sitting at an all-time high, according to data from CoinMarketCap, reflecting a gain of 57% year-to-date. Over the last week, SOL was up over 19% against ETH.
| Cryptocurrency | 7-Day Gains +/- | Price (Recorded at 12:30 p.m. EDT) |
| Solana (CRYPTO: SOL) | +13.65% | $173.33 |
| Ethereum (CRYPTO: ETH) | -4.63% | $2,497.52 |
The divergence comes at a time when Bitcoin, the market bellwether, was flirting with the $70,000 level in a bid to break out to new all-time highs.
According to Trading View, Solana’s Relative Strength Index (RSI) showed a reading of 67.80, indicating a neutral sentiment, having just returned from the overbought territory.
Additionally, the Moving Average Convergence Divergence (MACD) indicator was positive, flashing a ‘Buy’ signal.
On the other hand, Ethereum’s MACD indicator flashed a ‘Sell’ signal, while its RSI remained in the neutral zone.
However, despite the underperformance, analysts were not writing off Ethereum just yet.
Widely followed cryptocurrency-associated X handle Wolf spotted an ascending triangle pattern for the asset, which tends to be bullish as it indicates the continuation of an upward trend.
Another popular analyst, with the pseudonym Basel, said that Ethereum is “severely undervalued” in the long term.
He added that most of the L2 networks are built atop Ethereum and won’t be able to function in its absence.
Photo by Avi Rozen on Shutterstock
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