Is Ethereum Facing the Risk of 'Knee-Capping'? It All Depends on the U.S. Stock Market and Bitcoin's Performance

Recently, I came across the latest analysis from Bloomberg analysts, and it sent chills down my spine. This expert's view is very clear: Ethereum is currently like a kite tied to the war chariot of the U.S. stock market. If the S&P 500 continues to struggle, don't even think about Ethereum holding above $2000; it might just be directly cut in half to three digits!

I took a look at the candlestick chart myself and found that Ethereum's recent performance is indeed highly synchronized with the U.S. stock market. This situation is like a roller coaster tied to another roller coaster; if the U.S. stock market sneezes, the cryptocurrency market catches a severe cold. Especially when tech stocks collectively slump, Ethereum falls harder than anyone else.

Right now, the market is focused on two key points:

1. If Ethereum can rally back above $2000, it might give the entire risk asset market a shot in the arm.

2. But if big brother Bitcoin can't hold steady, the entire altcoin market might see a river of blood.

To be honest, I’ve recently felt that the market sentiment is off. Bitcoin has failed several times to break its previous highs, and funds are clearly retreating. In this situation, it’s a fantasy for Ethereum to stand alone and be unaffected. What's even more terrifying is that many altcoin projects have already started to secretly offload their assets; on-chain data doesn’t lie.

Personally, I think the most dangerous scenario right now is: the U.S. stock market continues to decline → institutional funds withdraw from the crypto market → Bitcoin loses key support → triggering a chain of liquidations → Ethereum leads the plunge. If it goes this way, don't even mention $1000; $900 might not be able to stop the fall.

However, let’s look at both sides; if it really drops to three digits, it might just be a golden buying opportunity. But we retail investors should not rush to catch the bottom; remember, you can’t catch flying knives in a bear market. In this market, preserving capital is more important than anything else. What do you all think?

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