The recent rise of Ethereum compared to Bitcoin is attracting the attention of multi-asset analysts, as the latest report from Sevens Report warned that the strategy of buying Ethereum and selling Bitcoin may carry signals for stock markets.
"Since early July, a notable dynamic has begun to emerge in the relative performance between Bitcoin and its 'second most popular crypto cousin', Ethereum," as reported by Sevens.
Ethereum has "significantly outperformed Bitcoin as the strategy of buying Ethereum and selling Bitcoin rapidly accelerated with cryptocurrency prices nearing record levels."
Sevens pointed out that while many traditional investors may overlook this shift, "there is a fundamental conclusion derived from multi-asset analysis."
Historically, sharp rises in ETH/BTC have coincided with "strong and compressed rallies in stock markets that precede short-term explosive peaks in the broader stock market."
The firm noted that examples include the rise of ETH/BTC in 2017 that preceded double-digit declines in stocks in 2018, the move in 2020 before the pandemic sell-off, and the rise in 2021 that foreshadowed the 'double bear market' of 2022.
Recently, "the current rise of 130% in ETH/BTC from its 5-year lows reached in April... clearly coincides with the resilient rise led by technology in stocks from 2025's lows," the memo noted.
Sevens highlighted that the current situation differs from 2023-2024, when Ethereum lagged while stocks recorded gains. The firm warned that the upward trend of ETH/BTC "is about to be tested in the upcoming sessions" and cautioned that "once the upward momentum from the rise of ETH/BTC fades, it would be wise for stock investors to raise their caution."
"Ultimately, in previous cases over the past ten years or so, every time we witnessed such a strong and clear rise in the ETH/BTC cryptocurrency pair, stocks rose concurrently. However, once the upward momentum from the rise of ETH/BTC faded, it would be wise for stock investors to raise their caution," Sevens said.#BTCWhalesMoveToETH $BTC
