A dynamic period has started for the Hyperliquid platform and its native token, HYPE, amid broader market movements. While Ethereum has surged to new highs—trading at $3,609 and up 43% over the past month—HYPE has experienced a pullback, dropping 3.3% in the last 24 hours and 1.1% over the week.

Ethereum recently surged past the $2,700 mark, marking a significant recovery after dipping below this level in June. This rally coincided with a historic low in the long/short ratio on Binance’s ETH/USDT perpetual contracts, which fell below parity for the first time since April 2023. The sharp move triggered a classic short squeeze, as a wave of ETF inflows from Wall Street collided with a heavily net-short derivatives market, resulting in heightened volatility and rapid pr