Solana (SOL) is currently experiencing a deepening downtrend when measured against Ethereum (ETH). However, technical indicators are signaling that this negative momentum might be nearing a turning point.

The SOL/ETH Ratio Plummets to Multi-Year Lows

In the last 24 hours, the SOL/ETH ratio recorded a significant decline of 3.22%, marked by a large red daily candlestick. This drop extends a losing streak for Solana against Ethereum that began on March 26, marking its sixth consecutive day of falling value relative to ETH.

Key Price Levels and Historical Context

The current trading range for the ratio is approaching levels last seen in June 2024. Specifically, the ratio hit an intraday low of 0.0392 recently. This is close to the two-year low recorded on February 6, which stood at 0.0386.

At the time of reporting, Solana was trading at $81.39, reflecting a 3.12% loss over 24 hours and a 9.48% loss over the past week. Conversely, Ethereum stood at $2072, showing a slight 0.33% gain in 24 hours, though it was down 3.31% weekly.

Technical Analysis Suggests Oversold Conditions

Following the sharp decline, the daily Relative Strength Index (RSI) for the SOL/ETH pair has dropped to the oversold threshold of 30. Analysts caution that this condition is not yet officially confirmed, hinting that further downward pressure could occur before a genuine reversal solidifies.

Potential Rebound Targets

If the oversold conditions are confirmed by market action, Solana could potentially reverse its trajectory against Ethereum. A successful reversal might see the ratio aiming toward the recent high recorded in 2026, set at 0.046.

Broader Market Context: Fed Rate Expectations and Liquidations

The general cryptocurrency market edged lower on Tuesday as investors adjusted their expectations regarding future Federal Reserve interest rate decisions. This market movement coincided with significant liquidations across the sector.

In the preceding 24 hours, approximately $305 million in crypto positions were liquidated. Long positions accounted for $188 million of these liquidations, while short positions totaled $117 million.

Market pricing, derived from the CME’s FedWatch tool, now reflects expectations of zero rate cuts from the Federal Reserve for the remainder of the year. Federal Reserve Chair Jerome Powell stated on Monday that he believes inflation expectations remain grounded, suggesting the Central Bank might not need to implement further interest rate hikes.

Disclaimer: The information provided is for informational purposes only and does not constitute financial advice. Readers should conduct their own due diligence before making investment decisions.