Analysis: The SOL/ETH exchange rate has broken below the ascending wedge pattern, facing a potential 40% downside risk

ChainCatcher news, according to Cointelegraph, the SOL/ETH trading pair has broken below a rising wedge pattern that has persisted for several months. Based on this pattern, the potential downside target is 0.038 ETH, which could represent a 40% pullback from current levels. Data from May 29 shows that the short-term support for this trading pair is around 0.0628 ETH.

On-chain data indicates that memecoin activity in the Solana ecosystem has significantly cooled down. The daily fee revenue of the main issuance platform Pump.fun has dropped to a nearly one-year low, a substantial decline from the peak in the first quarter of 2025. A recent report from Standard Chartered Bank pointed out that the development of Ethereum Layer 2 solutions could pose competitive pressure on Solana.