A low Equity Risk Premium (ERP) indicates stocks are overvalued relative to bonds (e.g., treasury yields), suggesting higher risk and potential market peaks. Conversely, a high ERP signals undervaluation and buying opportunities. Monitor ERP against historical averages for context.
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In Bitcoin's correction, leverage often rises as speculators bet on rebounds, or drops via forced deleveraging. High leverage leads to liquidations when prices fall, creating cascading selling that amplifies further declines.
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Ethereum's surge to $4245.7 likely saw spiking volume, signaling strong buying. High volume with price peaks may confirm strength; declining volume amid highs warns of exhaustion. For bottoms, rising volume with price stability indicates potential reversal.
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