Ethereum is a type of digital money that people can use to buy things or trade with others. In the past month, its price has gone down by 8%. Another digital money called Solana has gone up by 9.5% during the same time. Some people who watch the digital money market are surprised by this difference, because they thought Ethereum would go up more.

A person who watches the digital money market and tries to guess how prices will change, says that Ethereum might still go up a lot. He looks at something called a "hidden bull" which means that even though the price is going down now, it could go up very soon. He thinks Ethereum could reach a price of $4723.50, which is 48% higher than its current price.

Another person who looks at pictures of digital money prices on a computer screen says that Solana might also go up. He says that the price has gone down a lot, but now it might start to go up again. He suggests that people who want to buy Solana should wait for a good price and then sell it later for a higher price.

Some other people who watch the digital money market say that big companies have been buying a lot of Ethereum recently. This means that the price might go up because more people want to buy it. On the other hand, some people say that the number of people using Ethereum and Solana has gone down a little bit. This might mean that the price will not go up as much as some people hope. Read from source...

- Ethereum has significantly underperformed Solana despite the ETF launch
- Crypto trader Javon Marks noted that Ethereum's current price means a “hidden bull”, similar to the last time when it led to a surge over 162%. He predicts that "prices can still be setting up here for another massive continuation move!"
- Cypto chart analyst Ali Martinez noted that while the dip keeps dipping, Solana could be forming a bullish megaphone on the 4-hour chart. Based on technical analysis, the recent correction to the 61.8% Fibonacci level and oversold RSI suggest a buying opportunity.
- Another crypto trade said that after Solana broke the last consolidation range it surged 600%.
- IntoTheblock data shows large transaction volume and daily active addresses dropped by 3.4% and 9.2%, respectively. However, transactions greater than $100,000 increased from 5,760 to 6,539.
- Lookonchain data revealed that smart money purchased 4,000 ETH, worth $12.6 million. A trader who claims to have a win rate of 100% has purchased and sold Ethereum seven times between November 2022 and May 2024 for a total profit of more than $38 million.
- The trader has purchased 17,012 ETH (worth $61 million) at an average price of $3,587 since May 29 and lost $7.6 million at the current price.
- DefiLlama data shows Solana's total value locked spiked to $5.08 billion as of Aug.2 from $1.42 billion as of Jan.1.

Neutral

Key points:

- Ethereum has underperformed Solana despite the ETF launch
- Crypto trader Javon Marks sees a hidden bullish divergence for Ethereum that could lead to a 162% rally
- Cypto chart analyst Ali Martinez sees a potential buying opportunity for Solana on the 4-hour chart
- IntoTheblock and Lookonchain data show different trends in transaction volume, activity, and smart money buying for both coins
- Solana's total value locked has spiked to $5.08 billion

Summary:

The article compares the recent performance of Ethereum and Solana, two major altcoins in the crypto market. It highlights the bullish outlook of some traders and analysts who see a hidden divergence for Ethereum that could result in a significant rally, as well as the positive indicators for Solana, which has seen a surge in its total value locked. The article also cites some data sources that provide insights into the transaction volume, activity, and smart money buying of both coins. The article is neutral in tone and does not explicitly endorse or reject either coin.

High

Ethereum and Solana are both popular cryptocurrencies, but they have different use cases and purposes. Ethereum is a smart contract platform that enables the creation of decentralized applications (DApps) and decentralized finance (DeFi) projects, while Solana is a fast and scalable blockchain that aims to compete with Ethereum in terms of decentralized applications and smart contract functionality.

Recently, there has been a divergence in the performance of these two cryptocurrencies, with Ethereum underperforming Solana despite the launch of the Ethereum ETF. This has sparked a debate among traders about the reasons for this performance difference and what it means for the future of these cryptocurrencies.

One possible reason for this divergence is the upcoming transition of Ethereum from a proof-of-work (PoW) consensus mechanism to a proof-of-stake (PoS) consensus mechanism, called Ethereum 2.0. This transition is expected to improve the scalability, security, and energy efficiency of the Ethereum network, but it also comes with some risks and challenges, such as potential compatibility issues with some existing decentralized applications and smart contracts, as well as the possibility of forks and network splits. Therefore, some investors may be cautious about investing in Ethereum until the transition is completed and tested.

On the other hand, Solana has been able to attract a lot of developer and user interest due to its fast and low-cost transactions, as well as its support for a wide range of decentralized applications and smart contracts. Solana's blockchain is designed to scale without sacrificing security or decentralization, and it has been successfully processing millions of transactions per second. As a result, Solana has been outperforming Ethereum in terms of user adoption, network activity, and developer activity.

Another possible reason for the divergence is the regulatory environment for cryptocurrencies in different jurisdictions. While Ethereum is a global asset that can be traded and used by anyone with an internet connection, Solana may benefit from being more friendly to certain regions and markets, such as the United States, where it has been approved by the Securities and Exchange Commission (SEC) for listing and trading on regulated exchanges. This could give Solana an advantage in terms of liquidity, market depth, and institutional adoption.

Finally, market sentiment and investor preferences may also play a role in the relative performance of Ethereum and Solana. Some investors may prefer Ethereum for its established network effect, its role as the leading smart contract platform, and its exposure to the growing DeFi