Ethereum Price Jumps 9%, Outperforms Bitcoin Amid Crypto Market Rebound

Ethereum just popped back above $1,500 after jumping 9% in the past 24 hours—thanks to a positive U.S. inflation report and a surprise pause on tariffs. The move helped shift the Crypto Fear & Greed Index out of “Extreme Fear” for the first time in weeks. But beneath the surface, not everything is as upbeat as it seems.

Even with the rebound, investors are still pulling money out of crypto ETFs. Ethereum funds saw $11.2 million in outflows, despite ETH outperforming Bitcoin with an 8.1% gain. The overall crypto market is slowly recovering, but many large investors are still cautious.

Let’s unpack what’s happening behind the headlines.

Market Mood Turns Sour on Ethereum

According to recent data from Santiment, sentiment around Ethereum has become more negative. Since December 2021, ETH has dropped over 77% in value compared to Bitcoin and remains far below its all-time high in dollar terms. Meanwhile, many smaller altcoins have done better, leading to unflattering comparisons with low-value “shitcoins.”

This long stretch of underperformance has frustrated long-term holders. Even some institutional investors are starting to doubt whether Ethereum can keep up with the fast-changing crypto space.

What’s Holding Ethereum Back?

There are a few key reasons behind Ethereum’s struggles. Its move to faster Layer-2 networks was a smart step forward, but it ended up splitting user activity across different platforms. At the same time, Ethereum’s upgrades have been slow and complicated, making it tough for everyday investors to keep up.

Compared to Bitcoin’s simplicity or Solana’s speed, Ethereum now feels stuck in the middle—not leading in innovation, but also not seen as the safest choice.

Behind the Scenes: Quiet but Steady Progress

Even with the criticism, Ethereum has made big improvements behind the scenes. In 2022, it switched to Proof-of-Stake, which cut down energy use and reduced the supply of new ETH. In 2023, it added the ability to withdraw staked ETH. More upgrades are coming to make Layer-2 transactions even cheaper and smoother.

Ethereum still leads the way in DeFi and on-chain identity. It also gained more trust from institutions with the launch of Ethereum Futures ETFs. Liquid staking platforms like Lido and cbETH have helped grow the ecosystem, showing that Ethereum’s foundation is still strong for the long run.

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Ethereum’s Still Strong – Just Overlooked?

Ethereum is still the second-largest cryptocurrency, now trading around $1,540—well ahead of Tether. But despite this, the mood around it remains negative. Ironically, such strong bearish sentiment often comes just before a trend reversal.

Ethereum may not be making big headlines right now, but it’s quietly improving. With steady progress and real use cases still growing, it could end up being one of the most underrated crypto assets as we head into 2025.

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It may not be the flashiest name in crypto right now, but ETH could be playing the kind of long game that only makes sense in hindsight.

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