ETH shows Connection to the Tech Sector: Nasdaq 100 Correlation Continues to be High

Last week, the AI stock sector in the United States experienced a significant decline due to two main reasons. First, analysts misinterpreted the statements of Broadcom’s CEO, which triggered an emotional reaction in the market. Second, the narrative surrounding extreme ultraviolet lithography and the so-called “Manhattan Project” left a deep impact. Experts like blockchain whale agent Garrett Jin considered these two points to be mere noise that should fade within the next 6 to 12 months.

This week, we observed a gradual recovery of AI stocks overall. Companies that had previously fallen sharply, such as Oracle facing debt challenges, began to show strength. This is a positive sign that panic selling is ending and investors are starting to build temporary support levels.

Nasdaq 100 and ETH: The Leading Correlation

The Nasdaq 100 index has fully recovered from the tests caused by bearish headlines. This shift is critical because it indicates a halt in the downtrend and the formation of new momentum.

Ethereum (ETH) is leading in showing a deep correlation with the Nasdaq 100 index. This technical characteristic is due to ETH’s tech stock Beta-like trait — it moves in the same direction as major tech stocks but with higher volatility. Currently, ETH has increased by 0.38% over the 24-hour period, demonstrating positive market momentum.

Implication for the Crypto Market

The high correlation between ETH and Nasdaq 100 means that crypto buyers should remain cautious of traditional tech stocks’ movements. As BTC continues to rise to around $90.74K, ETH follows how the larger tech sector moves.

This pattern shows that the cryptocurrency market is no longer entirely independent — it has become part of the larger ecosystem of tech-driven assets.