Ethereum vs Bitcoin: why the ETH/BTC ratio matters for crypto investors
Bitcoin and Ethereum are the two largest cryptocurrencies by market capitalisation. The ETH/BTC ratio strips out broad market moves and shows which is actually outperforming. As of June 2026, it sits at approximately 0.027 - a 10-month low - and tells a clear story.
Key Takeaway
- The ETH/BTC ratio measures Ethereum performance relative to Bitcoin - a falling ratio means BTC is outperforming.
- As of June 2026, the ETH/BTC ratio is approximately 0.027 - a 10-month low, well below its December 2021 peak of 0.086 (CoinDesk, May 2026).
- ETH is down 32% year-to-date vs Bitcoin 11% decline - driven by weaker ETF flows, higher Nasdaq correlation, and L2 fee cannibalisation.
- Bitcoin holds 58.2% market dominance as of April 2026 (ARK Invest/Zipmex).
- Ethereum's Glamsterdam upgrade (targeting 10,000 TPS and 78% lower gas fees, end-August 2026) is the primary catalyst that could shift the ratio.
- UK CGT applies to both BTC and ETH on disposal. IG charges zero commission on both.
Bitcoin and Ethereum are the two largest cryptocurrencies by market capitalisation - and understanding the difference between them is fundamental to any crypto investment decision. There is a single metric that goes further than comparing their dollar prices: the ETH/BTC ratio.
This ratio measures how much one ether can buy in bitcoin terms, stripping out the broad dollar moves that affect all crypto at once. When the ratio rises, Ethereum is outperforming; when it falls, Bitcoin is the stronger performer. As of June 2026, the ratio sits at approximately 0.027 - a 10-month low, well below its 200-week moving average of 0.048.
450/mo
UK monthly searches for "ethereum vs bitcoin"
0.027
ETH/BTC ratio June 2026 - 10-month low (CoinDesk, May 2026)
58.2%
Bitcoin market dominance - April 2026 (ARK Invest/Zipmex)
What is the ETH/BTC ratio and how do you calculate it?
The ETH/BTC ratio is simply the price of one ether divided by the price of one bitcoin. With ETH trading at approximately $1,669 and BTC at approximately $63,000 in June 2026, the ratio is roughly 0.027 - meaning one ETH can buy approximately 2.7% of one BTC. Track this ratio on any charting platform by searching the ticker ETHBTC.
The ratio's value is not its absolute number - it is the direction. A rising ratio means ETH is gaining on BTC even if both are falling in dollar terms. A falling ratio means BTC is outperforming. The ratio strips out the broad macro moves that affect all crypto simultaneously, leaving only the relative performance between the two assets.
The ETH/BTC ratio: where it has been and where it is now
The ratio peaked at approximately 0.086 in December 2021 - the moment Ethereum reached its maximum relative value against Bitcoin, coinciding with the DeFi and NFT boom. After a prolonged downtrend, it bottomed at 0.018 in April 2025 during market turmoil around President Trump's tariff announcements, then recovered sharply to 0.043 by August 2025. By June 2026, the ratio has fallen back to approximately 0.027 - below its 200-week moving average of 0.048 (CoinDesk, May 2026).
Track the ETH/BTC ratio
BTC/GBP and ETH/GBP
Why is Ethereum underperforming Bitcoin in 2026?
Five structural factors have been compounding throughout 2026.
1. Higher Nasdaq correlation
ETH has a 0.78 correlation to the Nasdaq 100 versus Bitcoin's 0.55 (MEXC, May 2026). When Treasury yields rise and institutional investors de-risk from technology stocks - as in the US-Iran macro shock of May-June 2026 - Ethereum gets sold harder and faster than Bitcoin. Bitcoin's digital gold narrative gives it a different investor base.
2. Weaker ETF inflows
US spot Bitcoin ETFs have accumulated over 1 million BTC collectively since January 2024. Ethereum spot ETFs, approved in July 2024, have attracted significantly smaller inflows - a structural demand imbalance that continues to favour BTC over ETH.
3. Layer-2 fee cannibalisation
Ethereum's Layer-2 networks - Arbitrum, Optimism, Base - have become extremely efficient at processing transactions cheaply, but the fees they generate accrue to the L2, not to the Ethereum base layer. This has reduced Ethereum's fee burn rate, weakening the deflationary pressure on ETH supply that drove the ratio higher in 2021.
4. Bitcoin dominance cycle
In the early phase of crypto market cycles, Bitcoin tends to attract capital first. ETH typically outperforms in the later, more speculative phases of bull runs. With the current cycle in a risk-off phase, Bitcoin's relative performance vs ETH is consistent with historical patterns.
5. Glamsterdam upgrade uncertainty
Ethereum's Glamsterdam upgrade - targeting 10,000 TPS and 78% lower L1 gas fees - was delayed from Q2 to end-August 2026. Upgrade delays have historically weighed on the ETH/BTC ratio as investor attention moves elsewhere.
Quick fact
Fact: What could flip the ETH/BTC ratio higher?
Key catalysts: Glamsterdam mainnet activation (end-August 2026) demonstrating L1 scalability; sustained ETH ETF inflows closing the gap with BTC ETF flows; a reversal in Nasdaq correlation if tech stocks outperform; ETH fee revenue recovering as L2 activity drives base layer usage. The ratio bottomed at 0.018 in April 2025 - the current 0.027 is not the all-time cycle low.
Bitcoin vs Ethereum: the key differences
The ETH/BTC ratio captures relative performance, but these four structural differences explain why the two assets behave differently.
| Attribute | Bitcoin (BTC) | Ethereum (ETH) |
| Supply | Fixed 21M - no inflation | Unlimited; deflationary post-EIP-1559 burn |
| Primary use case | Store of value / digital gold | Smart contracts, DeFi, NFTs, stablecoins |
| Staking | Not applicable | 4-6% yield (variable, not guaranteed) |
| 2026 upgrade | None scheduled | Glamsterdam - 10K TPS, -78.6% gas (Aug 2026) |
Ethereum vs Bitcoin - summed up
- ETH/BTC ratio measures Ethereum performance relative to Bitcoin. Current reading: 0.027, a 10-month low.
- ETH is down 32% year-to-date vs Bitcoin 11% - driven by higher Nasdaq correlation, weaker ETF flows, and L2 fee cannibalisation.
- Bitcoin holds 58.2% market dominance (April 2026), near its highest in years.
- Glamsterdam upgrade (end-August 2026) targeting 10K TPS and 78% lower gas fees is the primary ETH catalyst.
- UK CGT applies to both BTC and ETH on disposal. IG charges zero commission on both.
- Past performance is not a reliable indicator of future results.
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Frequently asked questions
What is the ETH/BTC ratio today?
As of June 2026, the ETH/BTC ratio is approximately 0.027 - a 10-month low, well below the December 2021 peak of 0.086 and the 200-week moving average of 0.048 (CoinDesk, May 2026). Track the ratio on any charting platform using the ticker ETHBTC. Note: this figure should be refreshed quarterly.
Is Ethereum a good investment?
Whether Ethereum is a good investment depends on your individual financial circumstances, goals, and risk tolerance. This content is not financial advice. Ethereum offers unique exposure to the smart contract ecosystem and DeFi, and its Glamsterdam upgrade could improve its competitive position in late 2026. However, ETH has underperformed Bitcoin significantly year-to-date in 2026, and all cryptoassets are highly volatile.
Why is Ethereum falling more than Bitcoin?
Ethereum's larger drawdown vs Bitcoin in 2026 reflects five structural factors: higher correlation to the Nasdaq (making it more sensitive to tech sector sell-offs), weaker ETF inflows compared to Bitcoin ETFs, Layer-2 networks cannibalising L1 fees, Bitcoin's typical dominance in the risk-off phase of market cycles, and delays to the Glamsterdam upgrade.
Does the ETH/BTC ratio predict future performance?
No. The ETH/BTC ratio is a descriptive metric - it shows relative performance, not future direction. Historically, the ratio has moved in multi-year cycles, with Ethereum tending to outperform in speculative bull phases and underperform in bear phases. The current low ratio does not guarantee ETH will outperform going forward. Past performance is not a reliable indicator of future results.
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Past performance is not a reliable indicator of future results.
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