I’ve noticed that many people fall into the trap of managing positions in DeFi in isolation from the broader market context. The truth is that any strategy that ignores the relationship between BTC and ETH is highly vulnerable.

The best thing to do is to link your DeFi position sizes directly to the structure of Bitcoin and Ethereum. When BTC and ETH move, all the related liquidity and assets move with them. If you don’t take this into account, you may find yourself in a difficult situation when volatility occurs between chains.

Use retracement levels as strong reference points. Determine your position sizes based on these key ranges, and remember that BTC and ETH are not separate from each other. Every trade you make on a particular chain should be treated as part of an integrated system, not as an isolated investment.

This approach significantly reduces the likelihood of your thesis getting blown up by unexpected market moves. It requires more discipline in planning, but it protects you from costly mistakes.