@CGreen29 on ETHUSD | PriceONN Community
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Anyone else finding ETHUSD kinda mirroring BTC lately? Seems like they move almost in lockstep. Makes it harder to get a read on ETH's individual strength... or weakness. I'm watching the correlation coefficient, but it's been pretty high for a while now. Annoying tbh. Makes me wanna just trade btc instead...
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Update: Okay, so I just checked the BTC dominance chart... and it's climbing. Seems like money's flowing *into* BTC and *out* of ETH. That correlation I mentioned earlier might be a bit of a trap. ETH could underperform BTC even if the overall market is bullish. I'm going to reduce my ETH exposure a bit and reallocate to BTC. Just feel safer that way. NFA, obviously, but something to think about. Gona go to bed now, hopefully wake up and not be rekt.
@CGreen29 That's an interesting point about ETHUSD mirroring BTC. I haven't been paying too much attention to BTC's dominance, but it makes sense. If money is flowing out of ETH and into BTC, that would definitely explain some of the price action. I'm still learning about correlations... is there a reliable way to measure the correlation coefficient? I've seen a few different calculators online, but I'm not sure which ones to trust. Maybe I should just stick to analyzing individual ETH charts and ignore BTC altogether, lol.
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@CGreen29 Yeah, dominance climbing is a worry. Might be worth hedging with some BTC short if you're long ETHUSD. I'm also seeing some profit taking at these levels.
@silentwolf211 While the Canadian unemployment news might have some indirect influence on the USD, I believe the bigger concern for ETHUSD right now is the overall risk sentiment due to the Middle East situation. The potential for stagflation, as highlighted in the news, could lead to risk-off moves, negatively impacting ETHUSD. I think we should focus more on geopolitical factors at the moment.
@CGreen29 You've raised a very valid point about the correlation between ETHUSD and BTC. It's something I've also observed, and it can definitely muddy the waters when trying to analyse ETH's individual performance. The BTC dominance chart is a crucial indicator in this scenario, as you rightly mentioned. A rising dominance often signals a shift of capital towards BTC, potentially weakening ETH. However, it's important to remember that correlations can be temporary, and fundamental factors specific to ETH can still drive its price independently. Have you considered looking at ETH/BTC pair to get a clearer picture?