- The community is bearish on Solana and Ethereum, but experts remain very bullish on SOL.
- Crypto markets are still correcting, and most altcoins are currently in the red.
The cryptocurrency market is still recovering from a strong case of corrections, and altcoins are having it the worst of all.
At the time of this publication, almost all altcoins in the top 25 are in the red, having seen a slight decline on the daily charts. Is a bearish storm brewing on the horizon? Or are we still in an alternate season?
Solana and Ethereum inspire bearish sentiments
Two major altcoins stood out from the crowd, seemingly dancing with the bears. Both coins have fallen from the critical support levels of $2,995 and $145.
At the time of writing, Ethereum [ETH] It was worth $2,968 and solarium [SOL] It was at $141.
Data of CoinGecko says that the community is mostly bearish on both tokens at the moment.
Just two days ago, Glassnode shared that Ethereum's performance is much weaker than bitcoin [BTC]despite the fact that just a month before the opposite was happening.
This is a marked change from its previous position, where it had shown dominance over Bitcoin.
Ethereum's price drop has been massive, with its deepest drop reaching 44% over the cycle, which is more than double Bitcoin's 21%.
This highlights the difficulties and poor performance of Ethereum relative to Bitcoin.
The short-term fork cost base for Ethereum, which generally offers support, shows that current prices remain very close to the cost base of recent buyers.
Glassnode warns that this situation has created a precarious scenario where any further market decline could trigger a sell-off panic.
Source: Glassnode
A ray of light
Despite the gloomy outlook, not all hope is lost. Solana, for example, appears to have weathered what might have been its last major correction for this market cycle.
According to a well-known crypto analyst known as Immortalthe only support level Solana needed to defend is $120.
He still expects a rally, and his projections suggest a rise to a new high of $320 sometime this year.
Additionally, there are indicators that Solana could soon overtake Ethereum in terms of transaction fees.
Dan Smith, Senior Research Analyst at Blockworks, He suggested that Solana could surpass Ethereum in transaction fees and capture maximum extractable value (MEV) as soon as this month.
MEV represents the maximum profit that can be extracted from blockchain transactions through means such as arbitrage.
On May 7, Solana's total economic value was reported at $2.8 million, closing in on Ethereum's $3.1 million. Elite figures such as Arthur Hayes also remain very optimistic about SOL.
Interestingly, however, the community seems to be very bullish on the broader altcoin market, especially AI tokens like Fetch.ai [FET].
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coins meme like Pepe [PEPE] and bonk [BONK] We are still seeing new holders every day, suggesting that investors and traders are still expecting a bull run by 2024.
So, yes, the bears might have managed to take control. But it is likely to be temporary.
