- Ethereum leads ‘overvalued’ Solana in several key metrics, according to Standard Chartered analysts.
- The bank noted that Ethereum could rally to $7,000 under a Harris administration and $10,000 under Trump.
- Ethereum bounced off the support level near $2,400 as it attempts to tackle the $2,490 resistance.
Ethereum (ETH) price traded within the $2,300 to $2,350 range on Tuesday following a report by Standard Chartered Bank, which noted that the number one altcoin is ahead of Solana in several key valuation metrics.
Ethereum vs Solana: Valuation metrics
In a recent report, Standard Chartered analysts led by Geoff Kendrick noted that Solana is overvalued compared to Ethereum due to several novel valuation metrics:
- Ethereum's market capitalization versus network fee revenue ratio is 121, over 2x less than SOL's 250.
- Ethereum hosts 38% of the blockchain industry developer's pool, while Solana houses only 9%.
- Solana's annual supply growth rate is 5.5%, while Ethereum's inflation rate only recently turned positive at 0.5%. This implies that ETH's staking yield is 2.3% more than SOL's 1%.
Kendrick added that SOL's price, when compared against its valuation metrics, indicates "the market is pricing in a very bright growth future for Solana." The analysts wrote that SOL will outperform ETH and Bitcoin if Donald Trump is elected as the next US president. Conversely, if Kamala Harris emerges as the victor, SOL will trail the top two cryptos by market capitalization.
Additionally, the bank lowered its 2025 year-end ETH forecast, predicting the top altcoin to see a new all-time high of $7,000 under a Harris administration and $10,000 under Trump. This is almost 50% lower than its previous prediction of ETH reaching $14,000 by the end of 2025.
Meanwhile, Ethereum ETFs recorded neutral net flows on Monday, with the nine issuers recording zero flows, per Farside Investors data. This marks the second time the products have posted zero flows since launch. The first time was on August 30, when all issuers recorded zero flows.
Ethereum bounces off key support level as it attempts move toward $2,490 resistance
Ethereum trades around $2,430 on Tuesday, following $18.93 million liquidations in its derivatives market — with long and short liquidations accounting for $10.89 million and $8.04 million, respectively, per Coinglass data.
ETH bounced off a support near the $2,400 psychological level and is attempting to move toward a rectangle resistance at $2,490. However, it has to clear a barrier near the convergence of the 50-day and 100-day Simple Moving Averages (SMA). A successful move above the $2,490 resistance could send ETH toward $2,596.
ETH/USDT 4-hour chart
The Relative Strength Index (RSI) and Awesome Oscillator (AO) momentum indicators are slightly above their neutral levels, with the latter posting decreasing red bars. This indicates both bearish and bullish momentum is almost equal in the market.
A daily candlestick close below $2,395 will invalidate the thesis.
Cryptocurrency prices FAQs
Token launches influence demand and adoption among market participants. Listings on crypto exchanges deepen the liquidity for an asset and add new participants to an asset’s network. This is typically bullish for a digital asset.
A hack is an event in which an attacker captures a large volume of the asset from a DeFi bridge or hot wallet of an exchange or any other crypto platform via exploits, bugs or other methods. The exploiter then transfers these tokens out of the exchange platforms to ultimately sell or swap the assets for other cryptocurrencies or stablecoins. Such events often involve an en masse panic triggering a sell-off in the affected assets.
Macroeconomic events like the US Federal Reserve’s decision on interest rates influence crypto assets mainly through the direct impact they have on the US Dollar. An increase in interest rate typically negatively influences Bitcoin and altcoin prices, and vice versa. If the US Dollar index declines, risk assets and associated leverage for trading gets cheaper, in turn driving crypto prices higher.
Halvings are typically considered bullish events as they slash the block reward in half for miners, constricting the supply of the asset. At consistent demand if the supply reduces, the asset’s price climbs.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Top 3 gainers Supra, Cosmos Hub, EOS: Supra leads recovery after Trump’s tariffs announcement
Supra’s 25% surge on Friday calls attention to lesser-known cryptocurrencies as Bitcoin, Ethereum and XRP struggle. Cosmos Hub remains range-bound while bulls focus on a potential inverse head-and-shoulders pattern breakout.
Bitcoin Weekly Forecast: Tariff ‘Liberation Day’ sparks liquidation in crypto market
Bitcoin price remains under selling pressure around $82,000 on Friday after failing to close above key resistance earlier this week. Donald Trump’s tariff announcement on Wednesday swept $200 billion from total crypto market capitalization and triggered a wave of liquidations.
Can Maker break $1,450 hurdle as whales launch buying spree?
Maker is back above $1,300 on Friday after extending its lower leg to $1,231 the previous day. MKR’s rebound has erased the drawdown that followed United States President Donald Trump’s ‘Liberaton Day’ tariffs on Wednesday, which targeted 100 countries.
Gold shines in Q1 while Bitcoin stumbles
Gold gains nearly 20%, reaching a peak of $3,167, while Bitcoin nosedives nearly 12%, reaching a low of $76,606, in Q1 2025. In Q1, the World Gold ETF's net inflows totalled 155 tonnes, while the Bitcoin spot ETF showed a net inflow of near $1 billion.
Bitcoin Weekly Forecast: Tariff ‘Liberation Day’ sparks liquidation in crypto market
Bitcoin (BTC) price remains under selling pressure and trades near $84,000 when writing on Friday after a rejection from a key resistance level earlier this week.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.