Ether Underperforms Bitcoin as Chip Trade Unwinds and HYPE Falls

Par La Rédaction
Publié le 17 July 2026

Ethereum (ETH)

Ether underperforms against Bitcoin: unwinding of chip trade and HYPE crash weigh on ETH

Ether (ETH) continues to underperform against Bitcoin (BTC), a divergence that is worsening amid the unwinding of “chip trades” and a sharp decline in HYPE. While Bitcoin holds steady around $63,115, ETH struggles to keep up, widening the performance gap between the two largest cryptocurrencies on the market.

A persistent underperformance

The ETH/BTC pair is trading at its lowest levels in several months, reflecting a relative lack of investor enthusiasm for Ether in the current macroeconomic environment. Several factors explain this divergence:

• Unwinding of the “chip trade”: this investment strategy, which involved buying positions linked to semiconductors and technology (including ETH through its association with the DeFi ecosystem and smart contracts), is undergoing massive unwinding. Investors are reducing their exposure to technology assets in favor of safe havens — and Bitcoin benefits from this move as a digital store of value.
• The HYPE crash: the HYPE token recorded a 10% drop, reflecting a loss of confidence in layer-1 projects and social trading platforms. This decline has a knock-on effect on the entire Ethereum ecosystem, as HYPE is considered a leading indicator.
• Unwinding of the Japan Carry Trade: the rise in interest rates in Japan triggered a massive unwinding of carry trades, where investors borrowed in yen at zero rates to invest in higher-yielding assets. This unwinding particularly affects risky assets, including cryptocurrencies — and ETH, being more volatile than BTC, suffers more severely.

ETH vs BTC: a widening market dynamic

The underperformance of ETH relative to Bitcoin is not a new phenomenon, but it is intensifying in the current context. Since the start of the year, the ETH/BTC ratio has fallen significantly, from levels near 0.05 to lows around 0.03. This trend reflects several structural dynamics:

• The Bitcoin-as-store-of-value narrative: in an uncertain macroeconomic environment (geopolitical tensions, rate uncertainty, mixed inflation data), investors favor Bitcoin, perceived as the safest and most liquid crypto asset. ETH, with its higher risk profile and stronger correlation to technology markets, is being sidelined.
• The impact of ETFs: spot Bitcoin ETFs have seen net positive inflows of $368 million over three days, boosting institutional demand for BTC. Ethereum ETFs, although launched, have not generated the same enthusiasm, with significantly lower flows.
• Competition from alternative layer-1s: Solana (SOL), Avalanche (AVAX), and other layer-1 blockchains continue to gain market share in areas where Ethereum was dominant (DeFi, NFTs, decentralized applications). This competition erodes ETH’s position without affecting Bitcoin, as BTC is not in direct competition with these platforms.

HYPE falls 10%: an alarm signal for the ecosystem

The 10% drop in HYPE deserves special attention. This token, associated with the social trading platform Hyperliquid, experienced a meteoric rise before correcting. Several factors explain this decline:

• Profit-taking: after substantial gains, investors sold their positions, causing a mechanical correction.
• Regulatory concerns: while the Clarity Act advances in the United States, uncertainty persists over the regulatory status of certain tokens and platforms.
• On-chain liquidations: the drop in HYPE triggered liquidations on long positions, amplifying the correction.

This HYPE crash directly impacts ETH because it reduces confidence in the entire ecosystem of decentralized applications and on-chain trading, of which Ethereum is the backbone.

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