The ETH/BTC ratio says Ethereum is not done this cycle.

In a recent tweet, crypto analyst Sykodelic explains that ETH does not seem to be done with this cycle yet. This is according to one chart that has repeated for almost a decade, the ETH/BTC chart.

ETH/BTC cycle tops and outperformance phases. Source: Sykodelic

The ETH/BTC chart shows clearly defined phase changes. First ETH underperforms and then hits the bottom of a downtrend and then begins to rotate upwards. In the majority of cases, the start of that upward rotation means the beginning of the phase of a cycle when ETH becomes dominant and altcoins eventually pump. In those moments those pump periods are represented on the chart by the green areas. Historically a majority of pumps happened during these upward movement areas of the cycle.

According to Sykodelic ETH is now is at the very beginning of an outperformance, not in the middle or even at the end. Another fascinating aspect of what is happening with ETH now is the macroeconomic environment. Based on historical data when liquidity increases ETH outperforms considerably. At the moment liquidity has not fully expanded this cycle, however it appears to be going up.

Sykodelic says this is not just a random pattern, he saw the same structure play out in 2017 and 2021. Now he is recognizing a familiar structure again this cycle. And so if you wonder if this is the end for ETH or not, the chart says that this is not the end and we already saw this part before.

Source: https://x.com/Sykodelic_/status/2007913537793147374