Sevens Report: Ethereum’s Rally vs. Bitcoin Raises Red Flags
ETH/BTC rallies have historically aligned with equity blowoff tops
Why the long-ETH/short-BTC trade matters
According to the latest Sevens Report, Ethereum has “meaningfully outperformed Bitcoin with the Long-ETH/Short-BTC trade accelerating rapidly as both cryptos surged towards record highs.” While many traditional investors might dismiss the shift, Sevens emphasized that “there is a key underlying takeaway sourced in cross-asset analysis.”
Historically, sharp ETH/BTC rallies have coincided with “squeezy yet powerful rallies in equity markets preceding near-term blowoff tops.” Examples include the 2017 ETH/BTC surge ahead of the 2018 equity drawdown, a 2020 spike before the pandemic selloff, and a 2021 rally that foreshadowed the “Double Bear Market” of 2022.
Sevens noted that the latest 130% ETH/BTC rally off April lows “has obviously coincided with the resilient tech-led rally in stocks off the 2025 lows.” Unlike 2023–2024, when ETH lagged while equities climbed, the current setup suggests stocks may be vulnerable if crypto momentum fades.
“Bottom line, in prior cases over the last 10 years, every time we have seen such a robust and pronounced rise in the ETH/BTC crypto-pair, stocks have been sprinting higher in lockstep. However, once the upside momentum faded from ETH/BTC rally, it would have been prudent for equity investors to put their guard up,” Sevens concluded.
Also, click here to view the full article on Yahoo Finance published on August 28th, 2025. However, to see the Sevens Report’s full comments on the current market environment sign up here.
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