Solana (SOL) price faces pressure from Ethereum after the latter recorded a significant surge in activity and usage

Two days after the highly anticipated Pectra upgrade, Ethereum has seen a significant surge in activity and usage, which may put pressure on Solana (SOL) price to rally past $200 to all-time highs.

After the Pectra upgrade, the largest altcoin has also triggered a nearly 20% surge in ETH price as it asserts market dominance.

With Ethereum’s market share growing as its network usage also rises, a Solana price rally past $208 to all-time highs may be delayed. Let’s explore further.

Solana Price Remains Under Pressure As Ethereum Witnesses Record Transaction Volumes

Solana price faces pressure as Ethereum enjoys massive gains since the Pectra upgrade. While ETH has gained by around 20% since the event, SOL has surged by around 10% within the same period.

As Ethereum outpaces Solana, the SOL/ETH ratio has plunged to its lowest level in nearly a month. The steep decline in the ratio has seen it lose critical support at 0.074, and as the downtrend continues, it will likely reach 0.064 in the near term. The plummeting RSI shows that the bearish momentum is weak, further making the case for the SOL price to continue losing against Ethereum.

Traders also note that ETH will likely be at the top of the next altcoin season. According to hansolar on X,

“ETH ecosystem runs first, and then rotation into the SOL ecosystem.”

Meanwhile, BitMEX co-founder Arthur Hayes notes that it is now “fundamental season.” The statement comes as data from Coinglass reveals that in the last 24 hours, ETH recorded $248M in spot inflows, three times higher than Solana’s $94M

Data from DeFiLlama further supports the case that a Solana price surge to all-time highs may take longer, as ETH leads in transaction volumes. In the last 24 hours, Ethereum transactions reached 1.5 million, marking the highest level since January 2024.

Solana has been outperforming ETH in network activity due to the meme coin trading frenzy. However, if Ethereum reclaims its top position, it may impact SOL price, which will see the Solana rally to $180 taking longer to be achieved.

Can Solana Defy The Odds?

The one-day Solana price chart shows that this altcoin has formed an inverse head and shoulders pattern, which hints towards a bullish reversal to the upside. SOL has overcome a critical resistance level showcased in an ascending trendline, making it likely that a 42% rally is looming towards $216.

The RSI supports the likelihood of the uptrend gaining momentum after reaching 69, an indication that bulls are now in control and may push SOL past the $200 psychological level. At the same time, the MACD shows a bullish Solana price forecast after forming a buy signal.

As the technical outlook supports a positive outlook for SOL, it can defy the bearish odds posed by Ethereum’s rapid growth two days after the Pectra upgrade. However, a Solana price rally to all-time highs may take longer to achieve as ETH attracts more capital inflows and flashes signs of dominating the next altcoin season.

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