In the world of cryptocurrencies, Bitcoin and Ethereum stand out as the two most dominant players in the market. However, the ETH/BTC trading pair does more than just compare their prices — it also provides valuable insights into the overall market direction. For investors, this pair serves as a crucial indicator to measure Ethereum’s strength against Bitcoin and develop strategies accordingly. In this article, we’ll break down what the ETH/BTC trading pair means, why it’s important, and how to trade futures on this pair step by step.

What Is the ETH/BTC Pair?

The ETH/BTC pair represents the value of Ethereum (ETH) measured in Bitcoin (BTC). In other words, it shows how many Bitcoins one Ethereum is worth. For example, if the ETH/BTC price is 0.05, it means that 1 Ethereum equals 0.05 Bitcoin. This pair is often used to measure Ethereum’s strength or weakness against Bitcoin. If the ETH/BTC ratio is rising, it usually means Ethereum is gaining value compared to Bitcoin; if it’s falling, it indicates that Bitcoin is strengthening against Ethereum.

In summary, the ETH/BTC trading pair is calculated by dividing the price of Ethereum by the price of Bitcoin.

If ETH/BTC rises, it means Ethereum is gaining value against Bitcoin. Investors may see Ethereum as stronger compared to Bitcoin, which could increase ETH purchases. Ethereum’s market dominance may also rise.

If ETH/BTC falls, it means Ethereum is losing value against Bitcoin. Investors may see Bitcoin as stronger compared to Ethereum, which could increase BTC purchases. Ethereum’s market dominance may decrease.

The ETH/BTC pair has a direct impact on the Ethereum ecosystem and other altcoins. When ETH/BTC rises, investors tend to move into Ethereum and the ETH ecosystem, which means more capital flows into the ecosystem. When ETH/BTC falls, interest in Ethereum decreases, leading to capital outflows from the ecosystem.

If you don’t have a Binance or Binance Futures account yet, you can sign up through this link to enjoy special benefits. Additionally, if you’re activating Futures for the first time, you can use the code yuzde10.

How to Find the ETH/BTC Chart on Binance?

We can find it either by going to the Markets section on Binance or by clicking Futures on the homepage, then clicking on the currently open pair in the top left and typing ETHBTC.

Currently:

ETH: 4005

BTC: 113,000

To find the ETH/BTC pair, we divide 4005 by 113,000 and get a value of 0.035

If you want to open a futures trade on the ETH/BTC pair, set the mode, leverage amount, and the amount you want to enter. If you believe ETH will perform better than BTC, click LONG; if you believe BTC will perform better than ETH, click SHORT to trade futures on the ETH/BTC pair.

NOTE: Don’t forget to deposit the amount of Bitcoin you want to trade into the FUTURES section before opening a position.

Futures trading can increase potential profits but also carries a high risk of significant losses; beginners in particular should keep their leverage low. What I’ve shared is not investment advice, just my personal opinion.