Solana price has stabilized above a key support level as signs of bottoming emerge ahead of the spot Ethereum ETF approval.

The SOL token was trading at $140 on Monday, slightly above the crucial support level of $120.50. Its market cap has risen to over $65 billion while its staking yield has increased to 7%.

Spot Ethereum ETF Approval

A potential catalyst for Solana is the upcoming approval of the spot Ethereum ETF, which could happen as soon as this week. If approved, billions of dollars could flow into these funds, similar to what was observed with Bitcoin earlier this year. The Ethereum ETFs are expected to go live soon.

Analysts believe that the Securities and Exchange Commission (SEC) will start to focus on spot Solana ETFs after this.

VanEck has already filed its application for a Solana ETF, and more companies like Blackrock, Franklin Templeton, and Ark Invest are expected to apply for a Solana fund. This makes sense because Solana is the fifth-largest cryptocurrency, following Bitcoin, Ethereum, Tether, and BNB. It also has a substantial daily trading volume, which stands at over $4 billion.

Solana is also the third-largest blockchain in the Decentralized Finance (DeFi) industry after Ethereum and Tron. It has over $5.4 billion in assets and more than 836,000 active addresses in its ecosystem.

Solana has become a favorite blockchain among developers due to its fast transaction speeds and low transaction costs. As a result, it has become a popular network, especially among meme coin developers. Some of the biggest Solana meme coins include Dogwifhat (WIF), Bonk, and Book of Meme (BOME).

Solana Price Bottoming Signs

The chart above shows that SOL price has found strong support at $120.50, where it has failed to move below four times since April 13th. This price is also a few points above the 38.2% Fibonacci Retracement level, indicating that bears are hesitant to short the coin below that point.

Additionally, the coin has formed a double-top chart pattern with a neckline at $188.20, which is about 35% above the current level.

On the flip side, a drop below the $120.50 support level will indicate that bears have prevailed, potentially leading to more downside.

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