Bitcoin $BTC is basically an emotional indicator now; the real alpha depends on whether Ethereum can drive the entire ecosystem up.
The current issue is that the narrative of Ethereum $ETH is too scattered, with a bunch of L2s, but there isn't one truly compelling story that can attract concentrated capital inflow. Unlike the last DeFi Summer, there is no clear direction this time.
In the short term, Bitcoin really has no potential; institutional trading is too heavy, and retail investors are unable to FOMO. Conversely, if Ethereum can break through key levels, there may be a wave of chasing funds entering the market.
The key is still whether new hot sectors can emerge, allowing Ethereum to become the first choice for speculative funds again.
KITE seems to be experiencing normal fluctuations. The AI infrastructure concept indeed has some heat. However, these small tokens generally follow the overall market. If there is resistance from a technical perspective, we have to see if it can break out with increased volume.
Continuing to rise under overbought conditions increases the risk significantly. Entering the market at such times is basically betting on how long the emotion can last.
I've noticed that the overall performance of the AI sector has been average recently. If Bitcoin adjusts, these smaller tokens will likely struggle as well. It's still important to control position size.
