The 'Ethereum Killer' Lives Up To Its Name: Solana Outperforms ETH by 19% Over A Week, But Can The Second-Largest Coin Stage A Comeback?

Ethereum and Solana have plotted drastically divergent trajectories over the past week or so, causing investors eager to shift capital away from Bitcoin BTC/USD to sit up and take notice.

What happened: Solana, often touted as the "Ethereum Killer," spiked over 13% in the last seven days, faring among the top weekly gainers. In contrast, Ethereum, with a much bigger market capitalization, slipped 4.63% in the said period.

In fact, in ETH's terms, SOL was currently sitting at an all-time high, according to data from CoinMarketCap, reflecting a gain of 57% year-to-date. Over the last week, SOL was up over 19% against ETH.

Cryptocurrency	7-Day Gains +/-	Price (Recorded at 12:30 p.m. EDT)
Solana SOL/USD	+13.65%	$173.33
Ethereum ETH/USD	-4.63%	$2,497.52

The divergence comes at a time when Bitcoin, the market bellwether, was flirting with the $70,000 level in a bid to break out to new all-time highs.

According to Trading View, Solana's Relative Strength Index (RSI) showed a reading of 67.80, indicating a neutral sentiment, having just returned from the overbought territory. 

Additionally, the Moving Average Convergence Divergence (MACD) indicator was positive, flashing a ‘Buy' signal. 

On the other hand, Ethereum's MACD indicator flashed a ‘Sell' signal, while its RSI remained in the neutral zone. 

See Also: Satoshi Nakamoto Identity Prediction Market Appears More Volatile Than Bitcoin: Sassaman Dethrones Peter Todd. 

However, despite the underperformance, analysts were not writing off Ethereum just yet.

Widely followed cryptocurrency-associated X handle Wolf spotted an ascending triangle pattern for the asset, which tends to be bullish as it indicates the continuation of an upward trend.

$ETH investors are understandably in disbelief due to its recent underperformance.
However, the chart still appears bullish; we could interpret it as forming an iHS or an asc. triangle.
ETH's time is coming. pic.twitter.com/z25wJf4Pdr

— Wolf 🐺 (@IamCryptoWolf) October 24, 2024

Another popular analyst, with the pseudonym Basel, said that Ethereum is "severely undervalued" in the long term. 

He added that most of the L2 networks are built atop Ethereum and won't be able to function in its absence. 

$SOL/ETH just set a new market cycle high and ATH! $ETH is severely undervalued long-term, it's easy for everyone to dismiss the fact that the majority of L2 blockchains are built on top of $ETH and wouldn't be able to function without it. pic.twitter.com/XyRe2Qtj2x

— Basel (@BaselIsmail) October 23, 2024

Photo by Avi Rozen on Shutterstock

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