Then what? They will all sell at ETH ETF annoncement and then repeat with SOL or whatnot?

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trickles down, as per usual, and then btc pairings will be overbought, and right back into btc it is, until btc is really overbought to usd, and then it is back to usd

and so the cycle goes for the traders

Yes, but I doubt an ETH ETF is coming anytime soon, if at all.