Recent Trends in Ether (ETH) Performance
According to CoinDesk, Ether (ETH) has shown a notable increase of 2.5% within the past 24 hours, contrasting with a slight decline in Bitcoin (BTC). This positive moment for Ether has resulted in the liquidation of $17 million worth of short bets on the cryptocurrency across derivatives exchanges.
The Ether vs. Bitcoin Battle
Despite this recent uptick, Ether has been underperforming against Bitcoin for several months. Over the past six months, Ether's value has declined by more than 10%, while Bitcoin has surged by 22%. As a result, the ETH/BTC ratio has fallen to its weakest point since April 2021.
Current Trading Range of Ether
Since early August, Ether has remained locked within the same trading range, currently sitting at around $2,700. The cryptocurrency has experienced two significant rejections at this level on September 27 and October 21.
Bitcoin's Record High Comparison
While Bitcoin has recently tested its all-time high of nearly $73,800, Ether still lags behind, remaining about $2,000 below its record peak from November 2021.
Market Sentiment Towards Ether
The relative underperformance of Ether has fostered negative sentiment and disappointment among traders, indicated by its market capitalization of $322 billion. One contributing factor to this bearish outlook is the rise of layer-2 networks, which are pulling market share, liquidity, and trading volume away from the primary Ethereum network.
Declining Key Metrics
Key performance metrics, such as the number of new wallets and transactions on Ethereum, continue to decline. This downturn has prompted many traders to increase their short positions on Ether, potentially preparing the ground for a dramatic short squeeze.
DeFi Landscape and Ether's Position
Despite the current challenges impacting Ether's price, data from DefiLlama reveals that Ethereum still holds more than 55% of the total value locked (TVL) across all DeFi networks and protocols, with the total exceeding $50 billion.
The Future of Ether
This positions Ether well as a primary beneficiary when capital begins to flow back into alternative cryptocurrencies (altcoins). As the market evolves, traders and investors will be keeping a close watch on both Ether's performance and developments in the layer-2 ecosystem.
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