#美联储宣布降息50个基点 In recent days, many friends have found that $ETH seems to have finally become stronger than $BTC , pulling more violently, and not following the callback of Bitcoin. My suggestion is not to guess when Ethereum will callback or fall, the market will not follow your subjective wishes, it is recommended to pay attention to a core indicator - ETH/BTC.
What is the ETH/BTC exchange rate?
The ETH/BTC exchange rate shows the price of 1 Ethereum (ETH) in terms of Bitcoin (BTC). This means that the exchange rate tells you how many Bitcoins you can exchange for 1 Ethereum. ETH/BTC is a currency pair that reflects the relative value between Ethereum and Bitcoin.
- If ETH/BTC is rising, it means that the price of Ethereum is rising relative to Bitcoin. In other words, you need more Bitcoin to buy one Ethereum.
- If ETH/BTC falls, it means that the price of Ethereum has fallen relative to Bitcoin, meaning that fewer Bitcoins can be exchanged for one Ethereum.
The ETH/BTC exchange rate is very useful for comparing assets and arbitrage in cryptocurrency investing. In particular, it provides you with a reference standard when you decide to convert between Ethereum and Bitcoin.
How to use the ETH/BTC exchange rate to assist in trading?
The ETH/BTC exchange rate can be used to measure the strength of Ethereum (ETH) relative to Bitcoin (BTC). Here are some key points on how to use this indicator to determine whether ETH is strong:
1. ETH/BTC rises: If the ETH/BTC exchange rate rises, it means that Ethereum is outperforming Bitcoin. In other words, the price of ETH is growing faster than Bitcoin, which can be seen as a sign of ETH's strength.
2. ETH/BTC falls: If the ETH/BTC exchange rate falls, it means that Bitcoin is outperforming Ethereum. At this time, the price of ETH is growing or falling more slowly relative to Bitcoin, which can be regarded as a signal of ETH weakening.
How to use this indicator:
- In trading decisions: When ETH/BTC is in an uptrend, you may consider increasing your holdings of ETH because it is stronger than BTC. Conversely, when ETH/BTC is falling, you may tend to hold BTC and wait for ETH to show strength again.
- Combine with other indicators: Although ETH/BTC can reflect relative strength, in actual trading, you can also combine other indicators (such as support, resistance, moving average, etc. in technical analysis) and fundamental factors to make a more comprehensive judgment.
- Market sentiment and trends: If the market as a whole is confident in Ethereum’s application scenarios (such as DeFi, smart contracts, NFTs), it will usually drive the ETH/BTC exchange rate up; conversely, if the market is more optimistic about Bitcoin’s function as a store of value for “digital gold,” Bitcoin may perform better than Ethereum.
On the whole, the rise or fall of the ETH/BTC exchange rate can indeed be used as an important reference tool to measure the strength or weakness of ETH, rather than fantasizing that "it should fall if it rises too much" or "it should rise if it falls too much".
