A possible explanation for the price action of ETH

The election of Trump shows us that people choose nowadays to follow simple stories rather than complex truths. Repeat over and over simple stories and people gather around.

The appealing story that is repeated over and over on Coindesk, CNBC, Forbes, Twitter, Reddit, YouTube is "Solana is faster and cheaper than Ethereum and will replace this old tech".

The Ethereum Foundation would not waste money hiring a team of communicative people to explain to journalists, economists, politicians, on YouTube, etc what Ethereum is and does. For example thanks to a series of past upgrades, fees in the Ethereum ecosystem have been lower than Solana's for months while the speed (number of transactions per second) has been equivalent (Solana cheats by counting protocol messages). On the monetary side, the number of existing ETH has been decreasing since The Merge (comparable to stock buybacks) whereas SOL inflates at +5% per year.

PS. Why the hype around Solana is a simple story too beautiful to be true: The number of validators on Solana is very low* and so low that the operators colluded several times to halt the network, and recently to push an emergency upgrade.

The whole point of the concept of blockchain is decentralisation (meaning impossibility to collude), otherwise the blockchain is just a database managed by a few people, which doesn't bring any advantage. Solana is a database.

* it is low because they are losing money, which is a unique situation (I would say a flaw) in the world of blockchains, due to the extremely high hardware and bandwidth requirements. They lose money despite creating +5% coins per year. Meanwhile, the number of existing ETH has been decreasing since The Merge and Ethereum validators are profitable.