Ethereum Watch

• The Solana to Ethereum ratio returned to its level prior to FTX’s collapse in 2022.
• Despite the sideways market movement, coin accumulation continued to thrive.

The Solana [SOL] to Ethereum [ETH] ratio has rallied steadily since September and has returned to its level prior to the collapse of crypto exchange FTX in November 2022, Kaiko Research found in a new report. 

This ratio is a measure of SOL’s performance against ETH. It is calculated by dividing the price of SOL by the price of ETH. 

A rising SOL/ETH ratio indicates that SOL is outperforming ETH, while a falling SOL/ETH ratio indicates that SOL is underperforming ETH.

According to the on-chain data provider:

“Since September, SOL has been the clear outperformer, with the ratio between the two jumping from 0.011 to nearly 0.025, breaking the ratio from just before FTX’s collapse.”

SOL and its tale of success

At press time, SOL traded at $41.47, according to data from CoinMarketCap. Since 1 September, the altcoin’s value has climbed by over 100%. At its press time price, the coin exchanged hands at a price level last recorded in August 2022.

Although SOL has spent the past few days oscillating within a tight range, the bulls remained in control of the spot market at the time of publication.

An Average Directional Index (ADX) reading of 68.47 at press time suggested that SOL’s current uptrend was a strong one. Typically, ADX values above 50 indicate that the market trend is robust and has been sustained over a period of time.

With the positive directional index (green) resting above the negative directional index (red), buying momentum outpaced SOL’s distribution. This, coupled with an ADX reading of 68.47, indicated that the bears would find it hard to displace the bulls in the short term.

Further, key momentum indicators were spotted above their respective highs as of this writing. For example, SOL’s Relative Strength Index (MFI) and Money Flow Index (MFI) rested at 73.75 and 57.95, respectively. 

Realistic or not, here’s SOL’s market cap in ETH terms

This signaled that despite the price consolidation in the past few days, buying activity continued to outpace selling activity among spot market participants. 

Moreover, SOL’s Open Interest has risen steadily since 14 October. At $514 million at press time, it has since increased by over 80%. The OI sat at its highest level since March, according to Coinglass. 

Source