ETH continues to exhibit strong tech stock characteristics: high correlation with Nasdaq 100 confirmed

According to the well-known on-chain analyst Garrett Jin, the ongoing connection between Ethereum and the Nasdaq 100 Index is characterized by the typical beta properties of technology stocks. ETH moves in the same direction as tech stocks but exhibits significantly higher volatility.

The AI Sector Turbulence as a Catalyst

The recent sell-off in the US AI sector was triggered by two main factors: firstly, a misinterpretation of statements by Broadcom’s CEO by sell-side analysts led to uncertainty. Additionally, there was the debate surrounding the Extreme Ultraviolet Lithography project with its “Manhattan Project” narrative. Industry observers believe these are temporary disturbances, and their effects are likely to diminish over the next 6–12 months.

Stabilization and Bottom Formation in the Tech Segment

This week, signs of recovery were visible across the entire AI stock sector. Even previously pressured individual stocks like Oracle, which are struggling with structural debt issues, experienced price gains. This development typically indicates that the panic atmosphere has cooled and a temporary price bottom has been established. The Nasdaq 100 Index has now fully recovered the losses caused by negative headlines.

Ethereum Remains Closely Tied to Tech Market Dynamics

Given ETH’s pronounced beta characteristics — a trait that brings higher volatility compared to the underlying tech stocks — the correlation between Ethereum and the Nasdaq 100 remains elevated. This close interconnection underscores the increasing importance of macroeconomic and sectoral factors in the price development of digital assets.