Solana saw a major drop against Ethereum in the last 24 hours, printing a large red daily candlestick as the SOL/ETH ratio fell 3.22% in this time frame.
Based on the daily chart, Solana has been dropping against Ethereum since March 26, entering its sixth day of dropping, with today’s losses still the largest.
The SOL/ETH ratio continues to trade near a two-year low, reaching levels previously recorded in June 2024. The Solana Ethereum ratio fell to an intraday low of 0.0392. On Feb. 6, the ratio reached a low of 0.0386.
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Following the crash, the daily RSI has reached the oversold level of 30, but oversold conditions are yet to be confirmed, with analysts hinting at a further drop before a potential reversal.
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In a tweet, crypto analyst Ted Pillows suggests a further drop ahead, with the potential of a 25% to 30% drop before it bottoms.
“SOL/ETH looks like it could dump anytime soon. IMO, this could drop another 25%-30% before bottoming,” Pillows stated. A 25% drop from current levels may see the SOL/ETH ratio target 0.029.
On the other hand, if oversold conditions are confirmed, Solana may reverse its downward trend against Ethereum, potentially targeting the 2026 high of 0.046.
Crypto market in red
The crypto market edged lower on Tuesday as investors reassessed the outlook for Federal Reserve interest rates. In the last 24 hours, $305 million in crypto positions were liquidated; longs came in at $188 million, while short liquidations totaled $117 million.
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Money markets are increasingly pricing in zero rate cuts from the Federal Reserve for the rest of the year, according to the CME’s FedWatch tool.
Federal Reserve Chair Jerome Powell said on Monday that he sees inflation expectations as grounded, with the Central Bank not needing to respond with higher interest rates.
At the time of writing, Solana was trading down 3.12% in the last 24 hours to $81.39 and down 9.48% weekly. Ethereum was up 0.33% in the last 24 hours to $2072, but down 3.31% weekly.