Solana Spikes 13% as Ethereum Slips, Raising Eyebrows Among Bitcoin BTC/USD Investors

Ethereum and Solana have plotted drastically divergent trajectories over the past week or so, causing investors eager to shift capital away from Bitcoin BTC/USD to sit up and take notice.

Cryptocurrency price movements in the past seven days showed a contrasting trend for Ethereum (CRYPTO: ETH) and Solana (CRYPTO: SOL), with SOL emerging as a clear outperformer.

What Happened: Solana, touted by some as the "Ethereum Killer," surged over 13% in the last seven days, making it one of the top weekly gainers. In contrast, Ethereum, with a much larger market capitalization, slipped 4.63% in the said period.

In fact, in ETH's terms, SOL is now at an all-time high, according to CoinMarketCap data. For the year, SOL is up over 57% against ETH.

Over the last week, SOL gained over 19% against ETH.

The contrasting price movements come at a time when Bitcoin (CRYPTO: BTC), the market bellwether, made several attempts to break out to new all-time highs, flirting with the $70,000 level.

According to Trading View, Solana's Relative Strength Index (RSI) showed a reading of 67.80, indicating a neutral sentiment. The RSI recently returned from the overbought territory.

Meanwhile, the Moving Average Convergence Divergence (MACD) indicator was positive, flashing a 'Buy' signal.

On the other hand, Ethereum's MACD indicator flashed a 'Sell' signal, while its RSI remained in the neutral zone.

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However, despite the recent underperformance, analysts are not writing off Ethereum just yet.

Prominent cryptocurrency handle Wolf spotted an ascending triangle pattern for the asset, which tends to be bullish as it indicates the continuation of an upward trend.

$ETH investors are understandably in disbelief due to its recent underperformance.

However, the chart still appears bullish; we could interpret it as forming an iHS or an asc. triangle.

ETH's time is coming. pic.twitter.com/z25wJf4Pdr

Another popular analyst, going by the pseudonym Basel, said that ETH is "severely undervalued" in the long term.

Most of the L2 networks are built atop ETH and won't be able to function in its absence, he added.

$SOL/ETH just set a new market cycle high and ATH!

$ETH is severely undervalued long-term, it's easy for everyone to dismiss the fact that the majority of L2 blockchains are built on top of $ETH and wouldn't be able to function without it. pic.twitter.com/XyRe2Qtj2x

Photo by Avi Rozen on Shutterstock