Ethereum (ETH) pairs, traded against BTC, USD, or stablecoins, reflect market sentiment, adoption, and DeFi activity. Key factors include:
1. Liquidity: ETH/USD and ETH/BTC are highly liquid, with tight spreads on major exchanges.
2. Volatility: Influenced by Bitcoin trends, network upgrades (e.g., EIP-1559, Merge), and gas fees.
3. Correlations: Often moves with BTC but can decouple during Ethereum-specific developments.
4. DeFi Impact: TVL growth in DeFi boosts ETH demand, while layer-2 adoption may reduce gas-related sell pressure.
5. Macro Factors: Fed policies and regulatory scrutiny affect ETH pairs like other risk assets.
Technical analysis (support/resistance, RSI) and on-chain metrics (exchange flows, staking trends) aid in forecasting ETH pair movements.
