Why rebound at this point?
The background for the market style switch has become clear.
Ethereum has successfully rebounded by 50% after experiencing significant FUD (Fear, Uncertainty, and Doubt) from the community. This rebound verifies the typical market structure of 'low expectation reversal.' This situation indicates that market funds are beginning to flow into sectors with lower valuations and deeper pullbacks.
Bitcoin's ecosystem has experienced a deeper decline, but has greater resilience.
Almost all leading projects experienced a boom last year, and their current declines generally exceed 90%. The market widely believes that the values of these projects have been compressed to the point where there is almost no trading logic left. However, rebounds typically start from these 'abandoned' areas, which also brings greater resilience to the market.
Speculative gaming intensifies.
Meanwhile, marginal ecosystem assets have become high-volatility targets for short-term capital attacks. These assets usually carry higher risks and returns, attracting more speculative funds, further intensifying market volatility.
