Solana Hits Five-Month Low Versus Ethereum: Market Analysis
By Yashu Gola | Published: July 10, 2025
Key Points
- SOL/ETH breaks below bear flag support, indicating a potential 10–15% downside toward 0.0475 ETH.
- Traders are favoring Ether over Solana despite Bitcoin's surge to $117,000.
- SOL/USD targets $223, aligning with the 0.786 Fibonacci level and ascending channel resistance.
Market Overview
Solana (SOL) is currently underperforming compared to Ethereum's native token, Ether (ETH), amidst a bullish trend in the cryptocurrency market. The SOL/ETH trading pair has dropped to 0.054 ETH, marking its lowest point in five months, as traders show a preference for Ether during Bitcoin's record high.
Technical Analysis: Bear Flag Pattern
The SOL/ETH pair is experiencing downward pressure, forming a classic bear flag pattern on the daily chart. This pattern emerged after a significant drop from 0.0665 to 0.0565 ETH in early June, followed by a weak recovery that is characteristic of a bear flag, suggesting a pause before further declines.
As of July 10, the pair has decisively broken below the flag's lower trendline at approximately 0.0575 ETH. This breakdown, combined with decreasing daily volumes and an RSI nearing oversold levels, indicates a potential continuation of bearish momentum. The next target for this downtrend is projected near 0.0475 ETH, which aligns with historical support levels.
Solana Price Outlook in USD
In terms of USD, Solana (SOL/USD) appears to be in a recovery phase, trading near $164, which is an 8% increase from the previous session. This bounce follows a successful test of the ascending channel's lower trendline and a reclaim of the 200-day EMA, which now acts as dynamic support.
The current structure suggests a potential upward movement towards the channel's upper boundary, estimated at $223. This target coincides with the 0.786 Fibonacci retracement level from the recent swing high of $257.68 to a low of $96.20, providing additional confluence for this bullish target.
Should buying pressure persist, SOL could aim for the $223 level, representing a nearly 36% upside from current prices. However, if the price fails to breach this resistance, a pullback towards the midline of the channel or the $145–$150 support range may occur.