Ethereum May Outperform Its Layer-1 Rivals As SOL, ADA Risk 30% Crash

Ethereum’s native token, Ether (ETH), looks poised to outshine its major layer-1 competitors, Solana (SOL) and Cardano (ADA), as technical charts flash warning signs for the latter two.

Bull Flag Hints At Ethereum Price Rally

ETH is consolidating within a bullish continuation pattern. Meanwhile, SOL and ADA are at risk of sharp declines—potentially as steep as 30%—if bearish setups confirm.

At the core of Ethereum’s strength is a bull flag formation visible on its 4-hour chart. This pattern typically precedes upward continuation, especially following strong rallies — in this case, from under $2,000 to over $2,700 earlier this month.

ETH now hovers near the flag’s upper trendline, eyeing a breakout toward $2,827, its local high.

Ethereum’s price also sits comfortably above both its 50-period and 200-period simple moving averages (SMAs), signaling a strong uptrend. Its relative strength index (RSI) has cooled to neutral levels, suggesting there is more room to rally before hitting overbought territory again.

Solana, Cardano Risk 30% Crash

In contrast, Solana and Cardano are forming rising wedge patterns on their daily charts — setups often associated with trend reversals. SOL, currently trading near $167, risks a drop toward $111 if the wedge support breaks.

That represents a nearly 34% decline from current levels. The 200-day SMA is also acting as a resistance zone, adding further pressure on bulls.

Cardano is showing a similar structure. ADA/USD has already started to pull back from the wedge’s resistance and could drop to around $0.50, a level that marked key support in March.

Like Solana, Cardano’s price is squeezed between the 50- and 200-day SMAs, a sign of growing market indecision.

These diverging technical patterns suggest that Ethereum may not just hold steady but lead the next leg of the market, especially if capital rotates away from weakening L1s. If ETH successfully breaks above $2,700, it could attract renewed momentum and investor confidence.

However, if ETH fails to confirm its breakout, the broader altcoin market could enter a cooling phase. For now, Ethereum’s setup appears more constructive than its rivals.