Reading the ETH/BTC chart
The ETH/BTC ratio strips the dollar out of the picture. Whether the whole market is rising or falling, it answers one question: is ether beating bitcoin? Because ETH is the largest and most liquid altcoin, it is usually the first stop when traders take profit on BTC and look for more upside. That makes the ratio one of the earliest signs that an altcoin season could be starting.
- Rising and above the 50-day EMA — rotation has a trend behind it. This is the alt-rotation trigger used in the Alt Season score.
- Rising but below the EMA — a bounce inside a downtrend. Often fades unless dominance also turns down.
- Falling — Bitcoin leads; alts usually lag. This feeds the Bitcoin Season score.
ETH/BTC and Bitcoin dominance
The two usually move in opposite directions. The strongest alt-rotation setups combine a rising ETH/BTC ratio with falling Bitcoin dominance while BTC itself holds above its 50-day EMA, and breadth — the share of liquid coins in a daily uptrend — above 40%. If ETH/BTC rises but dominance keeps climbing, the move is usually ETH-specific rather than a broad rotation.
Where ETH/BTC fits in the macro chain
In DanioX's framework liquidity flows from gold to stocks to Bitcoin to large alts to small caps. ETH/BTC is the hinge between the third and fourth link. When the chain stage on the market season dashboard shows BTC leading, the ETH/BTC ratio is the thing to watch for the hand-off. A strong dollar can stall that hand-off at any point.
The ratio above updates every minute from Binance daily candles. It is an educational indicator, not a trading instruction — see the disclaimer.