Key Takeaways:
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Sol/ETH broke under an increasing wedge pattern and signals a possible decrease of 40%.
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Solanas Memecoin revenue has collapsed since April and weakened the core value promise.
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Standard Chartered warns Solana might be below average if Ethereum's L2 ecosystem becomes more competitive.
The multi -year outperformance of Solana (SOL) against Ethereum Native token ether (Eth) loses the dynamics, with technical relationships and the weakening of the activity of the change to a possible severe decline within the SOL/ETH couple next.
Sol enters into an increasing wedge constructing platform
By May 29, the SOL/ETH couple has confirmed a breakdown from the multiMONH -increasing wedge pattern, a bearish structure that is usually preceded by considerable declines.
From a technical standpoint, an increasing wedge injury typically results in a drop in the utmost height of the pattern.
Sol/ETH Weekly Price Chart. Source: Tradingview
For SOL/ETH, this projects a downward goal for July, near 0.038 ETH, which corresponds to a decrease of 40% in comparison with the present level.
The 50-week exponential sliding average (50-week EMA; the red wave) around 0.0628 ETH offers preliminary support. An important weekly closure below this level would probably confirm the Bärische continuation of the ETH goal of 0.038.
On the opposite hand, a jump could get back the lower trendliner of the wedge as support, which the breakdown scenario can delay. Breaking over the upper trend line of the wedge will probably invalidate the 40% falling overall.
Kühlmemecoin grass production Notes within the SOL/ETH crash
The collapse of SOL/ETH corresponds to a visual decline within the memecoing -controlled activity on Solana.
An essential indicator is Pump.fun, the biggest Memecoin starting platform within the network, which has shown a robust decline in day by day fees because the starting of April.
The day by day fees reached its peak in the primary quarter of 2025, but have since dropped to almost annual lows, which, in accordance with Dune Analytics, signaled speculative activity within the chain.
The platform was a significant contribution to Solana sales growth, especially between December 2024 and March 2025.
During this era, your complete cumulative fees rose over 3 million SOL, as a retail dealer, flooded the network to start out and act meme token. These metrics have crashed since then and have weakened one in all the primary value of Solana.
A report on May twenty seventh by Standard Chartered further increases the downward count. The bank warned that Solana could possibly be below average if it cannot diversify beyond Memecoins, which is currently dominating its transaction activity.
According to Standard Chartered, Ethereum wins with scalable solutions for layer-2 that supply comparable fees and a deeper infrastructure for real applications.
Chartist Alex Clay claims that an “Ethereum -outperformance season” has already arrived and that confidence within the increasing wedge injury is repeated within the SOL/ETH charts.
This article doesn’t contain investment advice or recommendations. Every investment and trade movement is the danger, and readers should perform their very own research results in the event that they make a call.
