SOL/ETH: The Rotation Setup

Crypto Lighthouse Subscribers: We’re going deep into the SOL/ETH chart today.

Zooming out

I’m here to help you to stay ahead.

Not giving the noise, not the intraday chop, but the high time frame structure that sets up the next major rotation trade.

The Current Picture

SOL/ETH ratio

SOL/ETH is trading around 0.0455.

After months of relentless bleed from the 0.087 highs, the pair has landed near at a key demand zone, the green support box you see on the chart.

This support isn’t random. It’s the same zone where buyers stepped in during mid-2023 and early 2024 before Solana outperformed ETH for months. History matters on these charts. Big players remember these levels, and order books reload here.

The arrow you see on the chart tells the story: a bounce off this support is the base case. Let’s go deeper now.

Higher Time Frame (HTF) Support and Resistance

Support Zone (Green Box)

  • Lower bound: ~0.033 

  • Upper bound: ~0.0395–0.040
    This zone is critical. If it holds, SOL will rebound against ETH and the ratio can double in the months ahead. If it fails, we’re looking at a deeper cycle reset, but probability favors a defense here. 

Resistance 1: 0.07678

  • This is the mid-level resistance and the first profit target. Historically, SOL has struggled here relative to ETH, and this is where I’ll trim aggressively. 

Resistance 2: 0.08754

  • This is the cycle high area from early 2025. If we rally here from the support zone, that’s a 90–100% relative gain. This is the exit zone for the majority of the position.

Why the Bounce Matters

  1. Oversold Context
    SOL/ETH is down almost 50% from the highs. Momentum is exhausted, sentiment is bearish, and traders have mentally written off SOL. That’s usually where rebounds start. 

  2. ETH Leadership Cycle
    Ethereum has been strong this year, but dominance doesn’t last forever. As ETH takes profits near ATH, capital rotates into high-beta majors like SOL. That rotation is what fuels SOL/ETH rallies. 

  3. Volume Profile
    Notice how volume spikes every time SOL/ETH tags this green zone. It’s where accumulation happens. That’s no coincidence, whales rotate here.

The Playbook

Subscribe to our premium content to read the rest.

Become a paying subscriber to get access to this post and other subscriber-only content.

Already a paying subscriber? Sign In.