This article is also available in Spanish.
A recent analysis suggests that the price of ethereum may be trading on an 8-year cycle, diverging from bitcoin's established 4-year cycle. This would explain the absolute underperformance of ethereum price in relation to the price of bitcoin since the beginning of the year. With this in mind, technical analysis suggests that the price of ethereum still has a long way to go in this cycle, especially if the price of bitcoin begins to undergo a major correction.
Understanding the eth/btc 8-Year Cycle
technical analysis of the <a target="_blank" href="https://www.tradingview.com/chart/ETHBTC/wXazJOfq-eth–btc-8-Year-Cycle/”>eth/btc chart has pointed out an interesting cycle between both cryptocurrency heavyweights. In particular, the chart shows that the price of ethereum has greatly underperformed the price of bitcoin over the past few years, a trend that has been further exacerbated since July of this year.
Related reading
Unlike bitcoin price, which follows a well-documented 4-year cycle aligned with its halving events, ethereum price appears to chart a different path. Over the years, data suggests that ethereum is aligned with an 8-year cycle. This distinction explains why ethereum and its ecosystem often appear to lag behind bitcoin during bull runs and bear markets. Interestingly, this distinction has been very obvious in the current bull cycle, which has seen bitcoin price hit multiple new all-time highs while ethereum continues to struggle below $4,000.
ethereum's 8-year cycle indicates that as the price of bitcoin begins to peak within its own cycle, ethereum could be counteracting these moves. This plays into the notion of an altcoin season where investors begin to profit from the price of bitcoin and begin investing in the altcoin market.
According <a target="_blank" href="https://www.tradingview.com/chart/ETHBTC/wXazJOfq-eth–btc-8-Year-Cycle/”>an analysis on the TradingView platformbitcoin's 4-year price cycle suggests that the leading cryptocurrency could sink to the depths of its sine path by 2026, according to its broker Power Law. On the other hand, this predicted bitcoin price drop will be offset by a simultaneous increase in the price of ethereum that would take it to its highest point in the 8-year cycle by 2026.
Projected peak for ethereum price in mid-2026
According to the 8-year cycle theory, the price of ethereum is projected to peak in mid-2026. This peak is expected to align with the bottom of bitcoin's 4-year cycle, creating a counterbalance between the two main cryptocurrencies. During this period, the price of ethereum is projected to rise to its highest levels as bitcoin enters a price correction phase. Additionally, BNB is expected to act as a stabilizing asset alongside ethereum as the price of bitcoin declines.
Related reading
The price forecast suggests that ethereum price could reach $17,600 by June 2025, with BNB simultaneously rising to $3,520. By July or August 2026, ethereum is expected to reach $150,000, while BNB may rise to $30,000.
At the time of writing, ethereum and BNB are trading at $3,385 and $660, respectively. bitcoin is trading at $98,150.
Featured image created with Dall.E, chart from Tradingview.com
