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May market analysis: Ethereum, Solana experience highest gains

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The ETH ETF approval and rumors about a SOL ETF boosted Ethereum and Solana in May. How are they holding up now?

May's market analysis: Ethereum and Solana experience highest gains

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  • SOL and ETH had the highest gains in the market increase in May.
  • The assets have declined significantly in the last 24 hours.

An analysis of a recently released market report showed that Ethereum [ETH] and Solana [SOL] had the highest increases in May. This surge was influenced by the ETF spot approval for ETH and the rumored proposal of a SOL spot ETF.

Solana, Ethereum lead gainers chart

According to a report released by Crypto Rank, the market experienced moderate growth in May and was not overwhelmingly bullish.

However, Ethereum and Solana saw significant price increases despite the slow trend. 

The data showed that SOL had a 30.1% increase, while ETH increased by 24.68%.

The chart indicated that these assets were the highest gainers, contributing to shifting market sentiment from neutral to positive.

What influenced the Solana, Ethereum price gain

The primary catalyst for the Ethereum price increase was the approval of its spot ETF. Traders view this approval as a source of extra liquidity entering the market.

Additionally, the approval is expected to raise the demand for ETH, positively impacting its price. Although trading has yet to commence, the news has boosted positive sentiment.

Moreover, Solana is seen as one of the main competitors to Ethereum. When the ETH spot ETF approval was announced, rumors started circulating about a SOL spot ETF being next.

Although no proposal has been submitted to date, the positive sentiment has continued and is reflected in the price trend.

How SOL and ETH have trended

An analysis of Solana’s price trend on a daily time frame showed that it started May with consecutive uptrends. Although it experienced some declines towards the month’s end, it finished higher than where it started.

According to AMBCrypto’s analysis, Solana’s price was around $134.54 at the end of 1st May, after an increase of over 6%. It closed the month with a decline of around 0.8% but was trading at approximately $165.58.

As of this writing, Solana was trading at around $153, having declined by over 3%. It was now trading below its short moving average (yellow line), which had previously served as support.

This trend was the opposite of how it started the previous month.

Solana price trend

Source: TradingView

An analysis of Ethereum’s price trend showed that it started May with a decline of over 1%, trading at around $2,970.

The rest of the month was relatively uneventful until 20th May, when its value increased by 19.23%, taking its price to over $3,600.

By the end of the month, ETH was trading at around $3,760.

Ethereum price trend

Source: TradingView


Read Ethereum (ETH) Price Prediction 2024-25


As of this writing, ETH was trading at around $3,519, experiencing a decline of over 4%. Similar to Solana, it has seen significant declines in June.

However, it remained above its short moving average (yellow line), which continued to serve as support around the $3,300 price level.

 

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Adewale is a full-time journalist at AMBCrypto. While he is increasingly fascinating by the world of blockchain and cryptocurrencies, Adewale holds a degree in International Relations. Besides working on insightful articles that touch upon the crypto-space's hottest issues, he finds joy in supporting Manchester United and Afrobeat music.
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