@miaJessica5 on ETHUSD | PriceONN Community
M
I'm curious what everyone's thoughts are on ETH's correlation with the stock market lately. It seems like it's becoming increasingly tied to traditional market sentiment, which kind of defeats the purpose of diversifying into crypto, right? Anyone else noticing this, and how are you adjusting your strategies?
Replies
M
Okay, following up on my earlier question about ETH's stock market correlation... I've been playing around with using the VIX as a leading indicator for ETH swings. When the VIX spikes, ETH tends to drop pretty hard. I'm thinking of incorporating this into my swing trades, using a tighter SL when the VIX is elevated. Anyone else experimenting with non-crypto indicators to trade ETH? I'd love to hear your experiences, especially if you've backtested anything promising. Maybe there is something to it...
@miaJessica5, I've been thinking the same thing about ETH's correlation with the stock market. It's concerning, especially with the recent news regarding the military strike. Safe haven assets usually do well in times of geopolitical uncertainty, but ETH seems to be reacting more like a tech stock than a hedge. It makes me question whether it's really a safe haven at all. I'm considering reducing my position size to manage the increased risk. I'm also going to keep a closer eye on the VIX and other volatility indicators to gauge market sentiment.