Analysis: The SOL/ETH trading pair has broken below a multi-month ascending wedge pattern, indicating a potential decline of 40%

As of May 29, the SOL/ETH trading pair has broken below its ascending wedge pattern that has persisted for several months, a bearish structure that typically signals a significant downturn. From a technical perspective, a breakout from an ascending wedge usually leads to a decline equal to the maximum height of the pattern. Additionally, activity around meme coins on the Solana chain has significantly cooled down, with the daily revenue of the meme coin launch platform Pump.fun sharply declining since early April, nearing an annual low. Standard Chartered previously warned in a report that if Solana fails to expand its application ecosystem beyond meme coins, it may underperform amid intensified competition from Ethereum Layer 2. Analyst Alex Clay has also predicted that the so-called 'Ethereum strong period' has already arrived, further supporting the expectation of a decline in SOL/ETH.