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ETH 4200 USD - Is it a signal for altcoins or a trap?
4200 USD worth of ETH looks like a signal for altcoins. But let me pour a bucket of cold water first: not every time ETH surges, can altcoins keep up with the rhythm.
Reason Analysis:
1. Mainstream funds are more stable. Large funds will prioritize allocating to ETH and BTC, rather than immediately rushing into higher-risk altcoins. Only when mainstream coins stabilize will altcoins have sufficient buying support.
2. The risk premium of altcoins The rise of ETH may attract new users to enter the market, but most new funds will first buy mainstream tokens and then gradually explore altcoins.
3. On-chain data signals
If we see a significant slowdown in the growth of ETH holding addresses, while DEX altcoin trading volume starts to surge, that is the true "altcoin season kickoff."
Wanting to go all in on altcoins just as ETH breaks 4200 is like rushing in to hug fireworks the moment you see them—there's a chance it could be romantic, but you might also get burned.
Conclusion: Wait for ETH's upward trend to enter a plateau phase, and then observe the liquidity changes of altcoin trading pairs; this is a more stable way to get in.