SOL/ETH Ratio Hits New All-Time High as Crypto Traders Become Superstitious of ETH Bulls
- WBOYOriginal
- 2024-08-07 12:05:14272browse
The SOL/ETH ratio — a measure of the value of one Solana token to one Ether token — has reached a new all-time high in the wake of a market shakeup that saw crypto prices tumble drastically on the week.
The value of one Solana token relative to one Ether token has reached a new all-time high as crypto markets begin to recover from a sell-off last week.
The Solana (SOL) to Ether (ETH) ratio notched a new high of 0.0595 on Aug. 6, according to TradingView data.
The rate at which one SOL token is valued to one ETH token has been closely watched by crypto traders throughout 2023, with the pair rallying to a high of 0.0591 in March.
The pair then fell sharply as the crypto markets crashed in May, with the SOL/ETH pair bottoming out at 0.031 in June.
Since then, the pair has been slowly recovering, largely in line with the broader crypto markets.
The latest leg up in the SOL/ETH pair comes as Ether fell as much as 22% on Aug. 5, while Solana fell 36% in the same timeframe.
However, following the sell-off, the price of SOL has bounced 35% from a local low of $110 on Aug. 5 to $144 at the time of publication.
Meanwhile, the price of ETH bounced only 15%, rallying from a yearly low of $2,157 to a price of $2,463.
Crypto traders have become superstitious of traders being overly bullish on ETH, with the market participants believing that ETH tends to perform poorly whenever there is too much bullish sentiment for the asset.
As part of the ongoing jest, traders have even introduced an “anti-indicator” to automatically short ETH whenever traders get too bullish on the asset.
In an Aug. 6 post to X, Spectral Labs said they had built an AI agent to automatically short Ether whenever crypto traders began posting bullish ETH/BTC charts.
The post included a screenshot of the bot’s interface, which showed that it had automatically opened a short position on Aug. 5 after detecting an increase in bullish ETH/BTC charts.
The bot then closed the position on Aug. 6 after Ether fell by 22%, generating a profit of 0.005 BTC (around $120 at the current exchange rate).
Spectral Labs then joked that the bot was performing poorly as it was supposed to generate losses.
The post also included a link to the bot’s code, which is available on GitHub.
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