ETH experienced a 1.54% decline within just 15 minutes, with market volatility significantly increasing. Mainstream cryptocurrencies drew heightened investor attention, and short-term trading activity markedly rose. During this window, prices rapidly dropped, reflecting an increased correlation among major coins. The primary driver of this movement was the sharp volatility of BTC during the same period, which led to a synchronized decline in ETH due to the correlation among mainstream assets. BTC price surged to $70,000 at 13:07, then fell below $69,000 at 21:26, triggering a rise in overall risk-off sentiment in the crypto market. In this context, high-frequency and quantitative funds quickly rebalanced their positions in the ETH market, triggering stop-loss mechanisms and further intensifying short-term selling pressure. Additionally, although not occurring on the same day, the on-chain outflow event at the end of January 2026, where $100 million USDC was burned from the USDC Treasury, continued to impact liquidity on the Ethereum chain, weakening ETH buy-side support. Meanwhile, global crypto asset investment products saw a net outflow of $173 million last week, indicating a decline in investor risk appetite. The Hyperliquid platform’s long-short ratio of only 0.95 further suggests a lack of bullish confidence and an increasing bearish sentiment. On the institutional level, Harvard Management Company reduced its BTC ETF holdings and increased ETH ETF holdings—long-term positive signals—yet the short-term rebalancing process exerted pressure on ETH, and multiple factors resonated to quickly suppress the price. Currently, market volatility is significant, and short-term trading and liquidity risks for ETH are elevated. It is recommended to continue monitoring the correlation between BTC and major coins, on-chain fund flows, stablecoin net outflows, and key long-short ratios. Caution should be exercised regarding potential fluctuations caused by rebalancing activities and macro events. Focus on on-chain support levels for major coins and market sentiment indicators to obtain more real-time market data and on-chain dynamics.