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Ethereum’s strong performance compared to Bitcoin is capturing attention beyond the cryptocurrency world. Analysts at Sevens Report said the trade of going long Ethereum and short Bitcoin is accelerating, and history shows it could carry signals for equity markets.
Since early July, Ethereum has outperformed Bitcoin in a big way as both tokens pushed toward record highs. Sevens said that while many investors may shrug off the shift, the pattern is important from a cross-asset perspective.
The report pointed out that sharp ETH/BTC rallies in the past have often lined up with powerful stock market rallies that were later followed by steep declines. Examples include Ethereum’s surge in 2017 ahead of the 2018 equity pullback, another rally in 2020 that came before the pandemic crash, and a big 2021 move that foreshadowed the bear markets of 2022.
Now, Ethereum’s rebound looks striking again. The ETH/BTC pair has gained about 130% from five-year lows in April. That has happened alongside a strong, tech-led rebound in U.S. equities from their 2025 lows.
The note also stressed how today’s setup differs from 2023 and 2024, when Ethereum lagged even as stocks kept climbing. This time, Ethereum’s outperformance is moving in step with equities.
But Sevens warned that history shows the rally doesn’t last forever. Once the ETH/BTC momentum fades, equity investors may need to brace for turbulence.
“Bottom line, every time we’ve seen such a pronounced ETH/BTC surge over the past decade, stocks have sprinted higher alongside it,” the firm wrote. “But once that upside momentum faded, it paid to be cautious.”