Simple explainer on why ETH moving is often the last straw. ETH is the heaviest major asset and one of the least liked. It's been underperforming for years and has no strong catalysts. It trades more like a slow "dino" coin - and if traders want to rotate into older assets, there are others with stronger narratives (like XRP or LTC ETFs). ETH usually moves late in mini-cycles because it's not the first choice for traders chasing momentum. Early in a move, people want faster, higher-beta assets that can move 30%+ quickly. ETH, being heavier and slower, gets ignored at first. It's only when most faster plays are already extended that traders rotate into "what's left" - and ETH becomes the fallback. When ETH finally starts moving, it's often a sign that the board is picked over. The easy trades are gone. Once the rotation into ETH plays out, there's no fresh energy left, and the market unwinds. Over time this behaviour has become reflexive. Traders recognise that ETH moving usually signals exhaustion, so they start selling faster, which accelerates the reversal.
38.22K
121
The content on this page is provided by third parties. Unless otherwise stated, OKX is not the author of the cited article(s) and does not claim any copyright in the materials. The content is provided for informational purposes only and does not represent the views of OKX. It is not intended to be an endorsement of any kind and should not be considered investment advice or a solicitation to buy or sell digital assets. To the extent generative AI is utilized to provide summaries or other information, such AI generated content may be inaccurate or inconsistent. Please read the linked article for more details and information. OKX is not responsible for content hosted on third party sites. Digital asset holdings, including stablecoins and NFTs, involve a high degree of risk and can fluctuate greatly. You should carefully consider whether trading or holding digital assets is suitable for you in light of your financial condition.