Ether’s been quiet. Too quiet, maybe. But today, it stirred. A 2.5% jump against a barely-moving Bitcoin – that’s a blink, sure, but it’s a blink that wiped out $17 million in short bets. People were betting against it, and suddenly, they weren’t. It’s a small win, but after six months of underperforming Bitcoin, it feels…different.
- Ether experienced a 2.5% jump against Bitcoin, wiping out $17 million in short bets, signaling a potential shift after six months of underperformance.
- Ether has been trailing Bitcoin, with the ratio between the two at its lowest since April 2021, and layer-2 networks are siphoning off activity.
- Despite challenges, Ethereum still controls over 55% of the total value locked in DeFi, highlighting its foundational role in the ecosystem.
For half a year, Ether’s been trailing Bitcoin. Bitcoin’s up 22%, Ether’s down over 10%. The ratio between the two? The lowest it’s been since April 2021. It’s been stuck in a trading range around $2,700 since August, bouncing off that level twice – September 27th and October 21st. Bitcoin, meanwhile, has been on a bit of a tear, sniffing around its March high near $73,800. Ether’s still about $2,000 shy of *its* high, way back in November 2021. Feels like a lifetime ago, doesn’t it?
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Layer-2s and Lingering Doubt
The problem, as many see it, isn’t Ether itself, but everything *around* it. All these layer-2 networks – Polygon, Arbitrum, Optimism, the list goes on – are siphoning off activity. Liquidity, volume, even just plain attention. It’s like opening a bunch of smaller shops next to the main department store. People spread out. And the numbers reflect that. New wallets are down, transactions are down. It’s a recipe for short-sellers to pile on, hoping for a quick profit. Which, as we just saw, can backfire spectacularly.
But here’s the thing: Ethereum still controls over 55% of the total value locked (TVL) in all of DeFi – that’s over $50 billion. So, when money starts flowing into these altcoins, a good chunk of it still ends up benefiting Ether. It’s the foundation, even if everyone’s building on top of it. It’s a bit like the plumbing in a building. You don’t think about it, but everything relies on it working.
The short squeeze today is a reminder that sentiment can shift quickly. People get bearish, they bet against it, and then…well, then Ether decides to move. It’s not a guarantee of a massive rally, not by a long shot. But it’s a sign that the narrative might be changing. Or maybe it’s just a temporary blip. It’s crypto, after all. Predicting the future is a fool’s errand. But watching what happens next? That’s interesting.
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