A new analysis from trader Merlijn The Trader suggests that Ethereum may be preparing for its largest rotation against Bitcoin in nearly a decade, a setup not seen since 2017, when ETH outperformed BTC by more than 50x.
According to Merlijn, Ethereum’s price behavior relative to Bitcoin is entering a phase strikingly similar to the 2015-2018 accumulation and breakout structure that preceded the explosive bull run to all-time highs. The chart he shared highlights three distinct phases: accumulation, re-accumulation, and a parabolic expansion that could mark the start of Ethereum’s next major rally.
Between 2015 and 2018, Ethereum’s BTC pair consolidated for nearly two years before breaking out, triggering one of the most dramatic rotations in crypto history.
That rally saw ETH’s dominance surge as investors shifted capital from Bitcoin into higher-beta altcoins. Merlijn believes the current structure mirrors that cycle almost perfectly, but this time, liquidity conditions and institutional participation are far deeper.
In the chart, Ethereum has been trading inside a long-term downward channel since 2018. Recently, price action has begun to form a new rounded accumulation base, similar to the one that formed before the 2017 rally. The analyst points to this pattern as a potential springboard, suggesting ETH could soon reclaim dominance if it breaks above the channel’s upper resistance line.
This potential rotation carries major implications for the broader market. Historically, when Ethereum begins to outperform Bitcoin, capital often flows into the altcoin sector, signaling renewed speculative appetite and an early-stage risk-on environment. Merlijn warns that many traders may underestimate the strength of this setup, saying the move “will catch most off guard.”
He adds that, unlike the previous cycle, Ethereum now benefits from institutional adoption, deeper liquidity pools, and expanding utility through staking, DeFi, and layer-2 networks, all of which could amplify the scale of any breakout.
If the pattern plays out as it did in 2017, Ethereum could be on the verge of a powerful rotation that reshapes market leadership once again, one that Bitcoin holders may not see coming until it’s already in motion.
