Here is the pattern I made by changing the color ramp to constant, I think it looks better overall.
This is what it looks like rendered with the suggestions you made. I hope i got it right.
I can see the shadows made by the pattern and it looks really close now to the reference image, but how would I go about with actually displacing the mesh and create the “steps of stairs” effect like the terraces?
I googled a bit and found out that if you switch to experimenting you can displace the mesh if you change the value of displacement to “displacement and bump”
So I tried to recreate what you suggested with what I found but it is not displacing the mesh according to the pattern and I don’t know why.