Solana-Ether Ratio Hits 3-Month Low, Analyst Anticipates Further Losses

The ratio has declined 35% in one month, reaching the lowest since March 13.

The ratio of solana's (SOL) native token to ether (ETH) has hit a three-month low amid a broader market sell-off and speculation over outflows from the Grayscale Ethereum Trust (GETH) following the anticipated approval of spot ether ETFs.

The SOL/ETH ratio has declined by 35% in one month, reaching the lowest level since March 13, according to Binance data. The ratio fell to 0.038 on the exchange, the lowest since March 13, as noted by TradingView charts.

Crypto trader and analyst Josh Olszewicz stated that the decline has put the bears in control and could lead to further losses.

"SOL/ETH [is] rolling over," Olszewicz said on Friday, highlighting key bearish developments on the technical chart like the penetration of the Ichimoku cloud support.

The Ichimoku Cloud was created by Japanese journalist Goichi Hosada in the late 1960s. The indicator consists of five lines: Leading Span A, Leading Span B, Conversion Line or Tenkan-Sen (T), Base Line or Kijun-Sen (K) and a lagging closing price line. The cloud is formed by the difference between Leading Span A and B and is used to identify broader trends.

Crossovers below the cloud, like in the case of SOL/ETH, denote a bearish shift in the market trend.

The SOL/ETH chart also shows a failure of a typically bullish pattern called the ascending triangle, which is identified by a rising support line and a horizontal resistance line.

Ascending triangles form when buyers are strong and usually lead to an extension of the preceding uptrend. However, the SOL/ETH pair has fallen below the ascending trendline support line, indicating a bearish change in trend.

Olzewicz stated that while the path of least resistance is to the downside, the pair may see temporary recovery rallies if there are outflows from the Grayscale Ethereum Trust ETF.

After the launch of spot bitcoin ETFs in the U.S., the Grayscale Bitcoin Trust ETF saw $6.5 billion in outflows, which were offset by large inflows into the other funds. A similar dynamic could be observed in the ether market following the expected approval of spot ETFs in July, which might limit ETH gains.

Finally, according to Olszewicz, there could be bids for SOL if BlackRock applies to launch an ETF linked to the token, though the ETF giant is unlikely to do so.

"Watching for: - ETHE outflows pushing this pair higher, temporarily - Larry SOL ETF application, unlikely otherwise, this pair should continue to decline if the ETH ETF is successful," Olszewicz said.

CoinDesk's Markets team is composed of a group of experienced journalists who follow the aspects of cryptocurrency markets. Our editors ensure that the news﹑features and analysis pieces put forth by our Markets team adhere to CoinDesk's strict editorial standards.

News source：https://www.kdj.com/cryptocurrencies-news/articles/solanaether-ratio-hits-month-low-analyst-anticipates-losses.html

The above is the detailed content of Solana-Ether Ratio Hits 3-Month Low, Analyst Anticipates Further Losses. For more information, please follow other related articles on the PHP Chinese website!