Solana (SOL) continues to capture attention in the crypto markets as its price action versus Ethereum (ETH) flashes signals of a potential trend reversal. The SOL/ETH trading pair has recently formed a rare sequence of Doji candlesticks on the weekly chart, precisely as it tests a critical confluence support zone near 0.043 ETH. 

Combined with growing institutional interest, including a reported $1 billion accumulation fund, the stage may be set for Solana to outperform Ethereum in the coming months. Steven Baxter, a trusted broker with Maverix-Global, unpacks this matter clearly in the article.

SOL/ETH Forms Rare Three-Week Doji Sequence

Technical analysts pay close attention to candlestick formations, especially when they occur at historical inflection points. On the weekly SOL/ETH chart, three consecutive Doji patterns have emerged, a highly unusual sequence that hints at seller exhaustion and a potential bullish reversal.

• Long-Legged Doji: The first of the three signaled a period of market indecision following a prolonged downtrend, where both bulls and bears attempted to gain control.
• Dragonfly Doji: The second candle carried stronger implications, showing buyers stepped in aggressively to defend lower levels, rejecting downside wicks.
• Four-Price Doji: The latest weekly close was extraordinary, with the open, close, high, and low converging to nearly identical values. This rare formation often marks a stalemate and a potential inflection point.

Together, this cluster of Doji candles strongly indicates that selling pressure is waning. Historically, such multi-week Doji sequences often precede trend reversals, making the 0.043 ETH zone a likely local bottom for Solana against Ethereum.

Confluence of Support at 0.043 ETH

The technical case for a bullish reversal is further reinforced by the alignment of two powerful support structures:

• The 200-week exponential moving average (EMA), a long-term indicator closely followed by institutional traders, sits exactly at the 0.043 ETH level.
• The 0.618 Fibonacci retracement, drawn from the previous major cycle’s rally, also converges at this same level.

This overlap forms what traders call a confluence zone, where multiple indicators reinforce the strength of support. Confluence levels often serve as springboards for major reversals when defended successfully.

The current setup is reminiscent of mid-2024, when SOL/ETH tested its 50-week EMA aligned with the 0.382 Fibonacci retracement. That structure resulted in a 150% rebound, sending Solana to a cycle peak near 0.09 ETH.

Now, with the 200-week EMA taking the role of the defender, the bullish setup appears even stronger. If bulls maintain this floor, Solana could once again enter a period of outperformance relative to Ethereum.

Institutional Tailwind: $1 Billion Solana Treasury

While technical structures suggest a potential reversal, fundamental drivers are adding weight to the bullish thesis. According to reports, Galaxy Digital, Multicoin Capital, and Jump Crypto are in advanced talks to raise $1 billion for a dedicated Solana accumulation fund.

The initiative, structured with Cantor Fitzgerald LP as the banking partner, aims to acquire a publicly traded entity and convert it into a digital asset treasury firm focused on Solana. If successful, it would establish the largest institutional reserve pool ever committed to SOL, far surpassing existing treasuries.

This type of deep-pocketed institutional conviction often catalyzes renewed investor confidence. Beyond price impact, such an influx of capital would also boost liquidity, support Solana’s ecosystem growth, and strengthen its long-term competitive stance versus Ethereum.

Comparing Solana and Ethereum

Ethereum remains the dominant smart contract platform, with the largest DeFi, NFT, and staking ecosystems. However, Solana has increasingly been recognized for its high throughput, low transaction costs, and scalability advantages.

When institutions commit large sums to Solana, it signals confidence that the blockchain can maintain its edge in areas like DeFi adoption, gaming integration, and real-world asset tokenization. Historically, phases of capital rotation between Layer-1 blockchains have resulted in periods of relative strength shifts in trading pairs like SOL/ETH.

If history repeats, Solana may once again rise from its current support zone, potentially challenging its mid-2024 highs near 0.09 ETH.

Conclusion: A Turning Point for Solana?

The rare Doji sequence, coupled with the 200-week EMA + Fibonacci confluence, paints a strong case for a local bottom in the SOL/ETH pair. With institutional players reportedly preparing a $1 billion Solana treasury, both technical and fundamental signals align in favor of a potential reversal.

Whether Solana can surpass Ethereum again will depend on the bulls’ ability to defend the 0.043 ETH floor and capitalize on incoming capital flows. If successful, the setup mirrors conditions that previously propelled Solana to outperform Ethereum by 150%, suggesting that history could once again be on the side of SOL.