Ether has surged by 2.5% in the past 24 hours, diverging from the recent downward trend against Bitcoin. Meanwhile, $17 million worth of short positions on Ether were liquidated across derivatives exchanges during this period.

• The persistent negative sentiment surrounding ETH due to its perceived loss of market share has left the door open for a potential short squeeze.
• In the face of layer-2 networks gaining traction, Ethereum continues to hold more than 55% of the total value locked across all DeFi platforms, exceeding $50 billion in TVL.

Market Context

The recent 2.5% growth in ETH occurred alongside a modest decline in Bitcoin. Historically, Ether has underperformed significantly compared to Bitcoin, dropping over 10% in the last six months while Bitcoin has gained approximately 22%. This has brought the ETH/BTC trading ratio to its lowest levels since April 2021.

Ether's recent price point of approximately $2,700 is a critical support level, having held firm during past tests in late September and October.

With Ether maintaining a market cap of roughly $322 billion, more fluctuations in the market could result in unpredictable trading dynamics as speculators react to shifts in sentiment.