Ethereum (ETH) Loses Value Against Bitcoin (BTC) as Hyperliquid (HYPE) Gains Favor

Ethereum ETH/USD has exhibited a curious pattern of weakness over recent weeks, with Hyperliquid HYPE/USD being a notable beneficiary of this trend.

Ethereum (CRYPTO: ETH) weakness has been a curious trend in recent weeks, with one crypto largely benefiting from this move — Hyperliquid (CRYPTO: HYPE).

What Happened: As highlighted by Lookonchain and pseudonymous crypto trader kirbyongeo, Ethereum has been hitting lower relative to Bitcoin (CRYPTO: BTC) each time BTC makes a move toward the $100,000 level.

The first time Bitcoin hit $100,000, ETH was trading at $3,900. Each subsequent time the crypto king hit the six-figure threshold, ETH price went lower: $3,800 → $3,700 → $3,400 → $3,200 → $2,800.

This shows that ETH lost value relative to BTC, possibly due to capital rotating out of the asset and into Bitcoin or other crypto.

On the other hand, Hyperliquid trended upward or maintained its value relative to Bitcoin.

The first time BTC hit $100,000, HYPE was trading at $12. Each subsequent time, the price went higher: $13 → $14.5 → $25 → briefly dipped to $23 → rebounded to $25.

This suggests a growing demand or a stronger market position for HYPE, which may be gaining favor as a speculative or preferred asset.

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What's Next: Crypto trader Nebraskangooner noted that Hyperliquid is in a rising channel, but it may not break to new all-time highs immediately from the current price.

The sentiment appears overheated, which could be a red flag.

However, trading volume has been high, indicating strong interest in the asset.

The trader believes the bulls need to defend the $22.33 level to maintain momentum and a move above $28.50 could trigger new peaks.

$HYPE (per request)

I'm still hesitant to think this one pumps to new ATH's immediately from here.

Looks like a rising channel for now and way overhyped on my timeline still.

Typically that's a red flag.

Mega high volume yesterday though.

Bulls need to hold $22.33 support to maintain momentum.

A move above $28.50 could trigger new peaks.

Crypto trader eon explained that HYPE has likely only completed one leg up on the weekly chart, with two more expected before topping.

The second leg could push it to $50, followed by consolidation, before a final move to more than $100.

He predicts a daily close above $26.3 could push prices to new all-time highs smoothly.

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