Comparing Ethereum and Solana
In a conversation with BeInCrypto, Slater Hale, CEO of Composable Corp and head of Blueberry Protocol, discussed the differences between Ethereum and Solana. He highlighted that one factor contributing to Solana’s stronger performance in 2023 is its larger price decline in the previous year. While Solana (SOL) has dropped almost 97% from its all-time high, Ethereum has only experienced a 77% decline.
According to the Fibonacci levels, both SOL and ETH have undergone similar corrections and are currently near their 0.382 Fib levels.
Source: TradingView
Another interesting observation is the outperformance of Ethereum’s beta assets such as Lido DAO (LDO), Arbitrum (ARB), and Optimism (OP). This can be attributed to the market’s constant search for new and innovative opportunities.
Hale believes that when the hype around the Bitcoin ETF subsides, Ethereum will be the next focus. The ETH/BTC pair showed strong signs of bottoming on the day the fake ETF endorsement tweet surfaced.
Regarding the comparison between Ethereum and Solana, Hale noted:
“The current situation with Ethereum highlights high transaction fees and a user experience that appears to be more tailored to large investors rather than ordinary customers. However, the reality is that Ethereum deliberately prioritizes long-term security and scalability over immediate user experience. This strategy aligns with protocols that aim to attract investors who prioritize security over fast, low-cost transactions.”
ETH forecast: what lies ahead?
The weekly timeframe reveals a consistent rise in ETH price since May 2022.
Throughout this period, ETH struggled to break above the $2,410 resistance level and the ascending resistance line. This critical area represents both a horizontal resistance level and the 0.382 Fib retracement level.
After four failed attempts (indicated by red symbols), ETH price finally experienced a bullish breakout this week, reaching a high of $2,689. This trend line had been in place for over 600 days at the time of the breakout.
The weekly relative strength index (RSI) also supports this upward momentum. It is trending higher and has entered overbought territory (indicated by the green icon). In the previous cycle, this preceded the price surge to a historical high.
If ETH continues to climb, the next resistance area to watch out for lies at $3,340-$3,500, which represents a 35% increase from the current price. This resistance is formed by the 0.618 Fibo correction level and a horizontal area.
Source: TradingView
Conversely, a weekly close below the ascending resistance line would invalidate the breakout. In such a scenario, ETH could potentially drop by 25% to the nearest support level at $2,000.
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