Solana's SOL Surges 20% Against Ether, Reaching New Weekly High
2min read Solana’s sol has experienced a significant rally, surging more than 20% against Ether (ETH) over the past week. This surge has led to speculation about whether the cryptocurrency can reach a price of $300, which would mark new all-time highs. The SOL/ETH ratio, which reflects the value of Solana in Ether, reached 0.080 on April 13, marking the highest weekly close ever. This uptrend has been evident since April 4, with the SOL/ETH trading pair forming higher highs on the daily chart.
This rally follows a bullish week for Solana, which has increased by 35% over the last seven days, compared to a 13% increase in the ETH price over the same period. A pseudonymous trader, Bitcoinsensus, noted that the SOL/ETH chart has shown signs of strength, suggesting continued outperformance of the Solana ecosystem. Previously, the SOL/ETH ratio reached as high as 0.093 in January during a rally in crypto prices, which saw the price briefly notch a new all-time high of $295.
Popular crypto trader BitBull shared a CME futures chart that suggests the SOL price could break out toward the $300 mark. The trader cited Ether’s price consolidation around $2,000 on the CME chart before breaking out to all-time highs in 2021. BitBull pointed out that SOL is now showing a similar structure on the CME futures chart as it trades within the $120 and $130 range, suggesting that SOL could follow a similar breakout to all-time highs above $300. BitBull also noted that, just like Ethereum's run in 2021, Solana is setting up for a massive move in 2025.
However, several onchain metrics suggest that SOL’s path to new all-time highs faces significant hurdles. For instance, Solana’s network fees dropped more than 97% to $898,235 million on April 14, compared to $35.5 million on Jan. 20. This decline in fees aligns with reduced trading activity on decentralized applications such as Raydium, Pump.fun, and Orca. At the same time, fees have stayed unchanged since mid-February on other decentralized applications, such as Jito, Moonshot.money, Meteora and Photon. Similarly, the daily DEX volumes on Solana plummeted to $2.17 billion on April 14, 93% below its Jan. 20 peak of $35.9 billion. Therefore, SOL’s journey toward new all-time highs will be a tough challenge unless there is a notable rise in network activity.
As of now, SOL’s price is up 3% during the past 24 hours to $133 and 54.5% below its Jan. 19 all-time record. The rally in SOL against ETH has sparked optimism among traders, but the path to $300 remains uncertain given the current onchain metrics and network activity. Investors and traders should conduct their own research when making a decision, as every investment and trading move involves risk.
