• Solana broke below $150, while Ethereum defended $2,500, reclaiming strength in the SOL/ETH ratio.
• SOL revisits a historically reactive support zone.

Volatility is back, and the market is actively stress-testing support levels across the board.

In high-beta environments like this, price structure matters more than ever. The logic is simple: Assets that defend key levels set the stage for reversal plays, while those that break down risk triggering cascading sell pressure.

So, is Solana’s [SOL] recent breakdown signaling a structural shift, one that paves the way for a deeper leg lower?

Solana revisits a trusted launchpad

Looking at the post-FUD landscape, Solana has taken the hardest hit, giving up nearly 15% from monthly highs after failing to hold the $150 level, down from its recent $180 range.

Meanwhile, Ethereum [ETH] has played it by the book, successfully defending the $2,500 support that opens the door for a potential recovery swing.

This divergence is reflected in the SOL/ETH chart, which dropped to a four-month low this week, losing 5% and reinforcing ETH’s relative outperformance.

However, the setup isn’t entirely lopsided.

Source: TradingView (SOL/ETH)

Interestingly, this same support zone has sparked three significant reversal rallies for SOL since September 2024.

If that historical pattern holds, Solana could be nearing a key inflection point – One that might pull in rotational flows and flip sentiment once again.

Can SOL’s core metrics back a turnaround?

Sure, Solana’s chart showed the Relative Strength Index sits in deeply oversold territory. 

A modest 1.07% daily gain adds weight to the bounce thesis, hinting at short-term relief. Yet under the surface, on-chain metrics are showing signs of reversal.

Daily Token Trading Volume surged by 14.9% for Ethereum to $11.7B, while Solana managed just a 9.1% rise to $2.3B.

The Fees metric shows a wider gap: Ethereum’s Weekly Fees jumped 107.7%, compared to Solana’s 16.6% increase. That’s a signal of stronger user activity and, possibly, greater conviction on the Ethereum side.

Source: Artemis Terminal

One chart bounce doesn’t fix fundamentals

With just two weeks to go before Q3 kicks off, the performance gap is widening. Ethereum is on track to close Q2 with nearly 40% gains, more than double Solana’s 17%.

Unsurprisingly, Ethereum continues to show strong investor confidence, firmly holding the $2,500 support level.

Meanwhile, although Solana’s technicals hint at a potential rebound, the broader outlook remains bearish. 

If current trends persist, recent dips in SOL may not represent buying opportunities but rather signal the beginning of a deeper decline heading into Q3.