Ethereum Set to Outpace Solana as Rising Wedge Pattern Weakens SOL/ETH Pair, Says Analyst

SOL/ETH forms a rising wedge with support near 0.068 ETH; a breakdown could push price to 0.050 or even 0.035 ETH levels.

RSI has dropped from 78 to 52 despite rising price, indicating bearish divergence and weakening SOL momentum vs. ETH.

Resistance at 0.085–0.090 ETH is firm; failure to break out may confirm reversal and SOL underperformance.

Solana may face a period of underperformance compared to Ethereum in the coming months, according to CryptoBullet. The analyst shared observations from the weekly SOL/ETH trading pair, which shows signs of structural weakness

A key concern is the formation of a rising wedge, commonly associated with fading bullish strength and potential reversals. Ethereum is poised to gain relative strength, as the wedge edges closer to a potential breakdown.

Bearish Pattern Forms Within Rising Wedge Pattern

The SOL/ETH chart shows a rising wedge with upward sloping trendlines. This setup has developed over time, forming higher lows from approximately 0.043 ETH to 0.068 ETH

SOL/ETH 1-week price chart, Source: CryptoBullet on X

At the same time, price peaks have tested resistance levels around 0.092 ETH, creating converging lines. As of the latest candle, the pair trades near 0.06821 ETH, trading just above the lower trendline.

The proximity to the support line raises concerns of a breakdown. If this support fails, the next key level is around 0.060 ETH. Below that, a significant horizontal support from mid-2023 sits near 0.045 ETH. Both levels may serve as checkpoints if the wedge loses ground.

RSI Divergence Shows Weakening Momentum

Adding to the bearish view is the RSI, which has steadily declined over recent months. While price has moved higher within the wedge, RSI readings have dropped from about 78 in late 2023 to nearly 52. This divergence suggests decreasing momentum despite rising price action, which often leads to a trend reversal.

The RSI is at 52, the lowest point since early 2024. If it continues to decline, it could support downside risks for the SOL/ETH pair. Notably, RSI divergence often precedes a breakdown when aligned with other technical indicators such as wedge patterns.

Resistance Levels Remain Strong While Breakdown Threatens

In spite of the prevailing uptrend inside the wedge, resistance remains strong at the 0.085 to 0.090 ETH levels. Short of an authoritative move above this area, upward movement will probably arrest. Yet, a break below the wedge would trigger a sharp retracement.

The lower trendline at around 0.068 ETH is now the critical level to observe. If it breaks, SOL can decline sharply towards 0.050 ETH, or even towards the 0.035 ETH area. These areas are the prior price consolidations and can act as reaction points in a bearish trend.

Overall, a combination of weakening RSI, solid resistance, and wedging pattern shows Solana will trail Ethereum. Key price levels to keep an eye on are both at the top and bottom of the wedge with Ethereum potentially taking charge in the short run.

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