ETH drops 0.66% in 15 minutes: Bitcoin goes up triggers capital rotation, ETH under pressure to pull back

From 02:15 to 02:30 UTC on July 7, 2026, ETH dropped 0.66% within 15 minutes, with price touching the 1779.35-1793.19 USDT range, showing a 0.77% volatility/price range amplitude. Market volatility intensified during this period, with traders' focus concentrated on Bitcoin's breakout, while ETH exhibited a clear weak consolidation pattern.

The primary driver of this anomaly was a macro linkage effect. Bitcoin rose from approximately $58,250 to near $64,000 in the first week of July, a gain of 10%. After Bitcoin's sharp rise, some investors took profits and rebalanced portfolios, shifting funds from altcoins like ETH to BTC, leading to selling pressure on ETH in the short term. This capital rotation mechanism explains the core logic behind the drop.

Second, Ethereum Foundation Treasury activity continued to unsettle market sentiment. In the first half of 2026, the Foundation sold ETH multiple times via OTC trades, including selling 10,000 ETH to BitMine in April and 5,000 ETH in March, sustaining market expectations of potential further sales. Additionally, whale addresses holding over 100,000 ETH were active between May and June, with some large holders choosing to take profits after price rebounds. Technically, ETH repeatedly tested the key support range of $1,779-1,800, triggering programmed stop-loss sell orders and amplifying short-term declines.

Current market volatility risks persist. Attention should be paid to whether Bitcoin's trend can stabilize, the effectiveness of ETH support at $1,770-1,800, and changes in Ethereum ETF fund flows. On the macro front, the impact of shifts in Federal Reserve monetary policy expectations on the overall crypto market remains a concern.