Analysis: SOL/ETH Trading Pair Breaks Multi-Month Rising Wedge Pattern, Suggesting a Potential 40% Decline

Market data shows that as of May 29, the SOL/ETH trading pair has broken below its months-long rising wedge pattern, a bearish structure that typically signals a significant decline. From a technical perspective, a breakout from a rising wedge usually leads to a drop equal to the maximum height of the pattern.

Additionally, Meme coin activity on the Solana chain has significantly cooled down, with the daily revenue of the Meme coin launch platform Pump.fun having sharply declined since early April, nearing an annual low. Standard Chartered Bank previously warned in a report that if Solana fails to expand its application ecosystem beyond Meme coins, it may underperform amid intensified competition from Ethereum Layer 2. Analyst Alex Clay predicts that the so-called "Ethereum strong period" has already arrived, further supporting the bearish outlook for SOL/ETH.