As for $ETH, it still has not gone out of the trend of being independent of $BTC and US stocks. It still maintains consistency in the general direction, and it still maintains a strong correlation with Russell 2000 in the detailed trend. It is still most affected by liquidity, so ETH and Russell 2000 have both declined from the high-speed upward trend, and only maintain an almost synchronized amplitude with BTC and Nasdaq.
Investors' confidence in betting on sector rotation with ETH and Russell 2000 may have declined, especially from the data of ETH spot ETF, the purchasing power has dropped significantly in the past two weeks, indicating that investors may have strong confidence in the sector rotation, because the basis of sector rotation is that the Federal Reserve has entered the interest rate cut cycle ahead of schedule, but at present, the possibility is not great.
Therefore, after being restricted by liquidity again, ETH has returned to the situation of increased amplitude, that is, when BTC rises, ETH rises more, but when BTC falls, ETH falls more. This is a typical increase in amplitude caused by lack of liquidity.
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