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The ETHBTC chart is often overlooked, but this "hidden" chart might be your best bet for finding volatility growth cycles. What makes this chart special is its ability to signal incoming volatility swings on the market.
When ETHBT goes up, it is often a sign that money is flowing into Ethereum's network. This influx is not just idle cash; it is active, it is chasing after returns and it is often poured into Ethereum's DeFi, leveraged trading platforms and meme coins. These sectors are notorious for their high-stakes, high-reward nature, which naturally brings in more volatility.
Looking at the chart, we see that the ETHBTC ratio has had its fair share of ups and downs. Recently, we can see a downward trend, indicating that Ethereum has lost some ground against Bitcoin.
Ethereum has a way of amplifying volatility when it receives more inflows than Bitcoin. A sudden spike in the ETHBTC ratio can be the prologue to a wider market shift, signaling that traders should brace themselves for an eventful trading period.
Similarly, the SOLBTC chart can be considered another indicator. Solana, with its own burgeoning DeFi and dApp ecosystem, can also influence the market's volatility.
On the current chart, there is a notable bounce off a recent low. This kind of movement often precedes increased trading activity on Ethereum, as traders react to the relative price advantage. The recent past has seen the ratio descending, but if the chart starts to curve upward, it could mean that Ethereum, and by extension, the crypto market, might be heading for a wild ride.