Solana News Today: Solana [SOL] Rallies 8% as Ethereum [ETH] Gains Momentum

Solana [SOL] has experienced an 8% rally this week, which could be the start of a larger upswing if Ethereum [ETH] continues to gain traction. Swissblock, a crypto insights platform, has issued a bullish rating for SOL, noting that it typically benefits from ETH rallies and broader altcoin season momentum. The analytics firm highlighted that when ETH leads, SOL tends to accelerate, suggesting that a strong rotation is setting up.

Historical data shows that SOL has fronted impulsive rallies in early and late 2024, followed by an ETH uptick. A similar pattern has been observed in July, raising the odds of another surge if the past trend repeats itself. The shift in altcoin momentum also supports this bullish outlook. After Bitcoin [BTC] jumped to a record high last week and BTC dominance waned, the altcoin shift began picking up momentum. BTC dominance has dropped from 66% to 62.4% since late June, further supporting the building altcoin season.

Based on the altcoin market cap, Swissblock noted that the sector could be in ‘Wave 5’, the most explosive phase. However, the expected surge could mark the likely peak for the cycle. Historically, Wave 5s in crypto unfold fast and vertical — this could mirror 2017 or 2021. Altseason may be here — but it could also be the last leg before the cycle peaks.

Meanwhile, the SOL/ETH ratio has dropped by 44% since April, indicating that the market has been more interested in ETH than SOL in recent weeks. If this trend continues, ETH may steal the show from SOL. However, large players remain bullish on SOL’s prospects, as shown by Galaxy Digital scooping $55 million worth of SOL. This was slight profit-taking from this week’s rally, with Glassnode showing that profit-taking hit an average of $400 million per day, relatively low compared to the profitability of $1B-$2.4B that marked the 2024 local peaks.

Overall, SOL could follow ETH's steps and extend its recovery above $180 if the historical trend repeats. The profit-taking is rising but relatively muted to cap the rally. However, the market is still heavily leaning on ETH at press time.