On-chain analyst Garrett Jin shared his views on recent market fluctuations on social media. He believes that the significant correction in tech stocks, especially AI-related sectors last week, may have been caused by the market overreacting to certain statements rather than signs of a fundamental deterioration.

It is worth noting that this week, the AI sector has already entered a general rebound mode, even for tech companies burdened with financial pressures, their stock prices are rising, which is often seen as a sign that panic has subsided.

Garrett Jin further pointed out that the current correlation between Ethereum and the Nasdaq 100 index remains high. Since the Nasdaq 100 has fully recovered from its previous decline, this may indicate that ETH will also bottom out and rebound following the index's trend. This correlation was particularly evident after the 1011 event, reflecting the deep linkage between the crypto market and traditional tech stocks.

From a market psychology perspective, when traditional stock markets regain confidence, crypto assets usually follow suit with a rebound, especially those closely related to technological innovation. The current technical trend may lay the foundation for the upcoming upward movement.