The chart (ETH/BTC) is the "compass" that tells you where liquidity should be concentrated for the highest return: should you keep it in the king (BTC) or move it to the minister (ETH) to lead the wave of altcoins.
The chart (ETH/BTC) is one of the most important indicators and references in technical analysis, and is no less important than the charts (USDT).
The primary benefit of this pair is that it measures the relative strength of Ethereum against Bitcoin, and shows the trend of "liquidity" within the market. Here’s how you can benefit from it practically and directly in analyzing (USDT) pairs:
• Determining liquidity direction (Altcoin Season):
• When ETH/BTC is in an upward trend: This means that Ethereum is outperforming Bitcoin and liquidity is flowing towards it. In this case, buying positions on (ETH/USDT) will have faster profits and stronger upward waves than (BTC/USDT).
• When ETH/BTC is in a downward trend: Bitcoin absorbs liquidity from the market. Here, either (ETH/USDT) will rise very slowly compared to Bitcoin, or it will drop significantly if Bitcoin decides to correct.
• Confirming support and resistance areas (Confluence):
• Imagine that (ETH/USDT) has reached a strong resistance area. If you open the (ETH/BTC) chart and find it also hitting fierce resistance (e.g., crossing with the EMA 200 moving average or an important Fibonacci level), this gives you a double and strong confirmation that Ethereum will drop, and it is an excellent signal to take profits or activate (OCO) orders to protect your trades.
• Enhancing the efficiency of trading bots (Trading Bots):
• Reading this pair is very helpful in determining the price ranges for networks (Spot Grid). If it bounces from a historical support area, this gives a greater confidence to expand the upper range for Ethereum's trading network as it is poised for a strong price surge against the dollar.
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