Duong, who heads research at the firm, explained that last week’s ETH momentum came largely from market mechanics — particularly position unwinding and rebalancing — rather than fresh capital flowing in. He emphasized that Ethereum was essentially playing catch-up with better-performing assets like Bitcoin and Solana.

Despite the uptick, Duong warned that enthusiasm for deploying large-scale investments into Ethereum remains low. “The price move doesn’t reflect a strong investment appetite,” he suggested in a social media post.

Meanwhile, his outlook on Bitcoin appears more upbeat. Duong pointed out that BTC continues to strengthen and could still expand its market dominance, helped in part by a more favorable macroeconomic backdrop.

He noted that easing tensions between the U.S. and China, along with a massive $600 billion trade pact involving Saudi Arabia, has lifted investor sentiment and eased fears of a looming U.S. recession. However, he flagged geopolitical complexity in Asia, where Japan’s upcoming elections could trigger a more combative stance in trade discussions, casting uncertainty over earlier optimism about a mid-year deal.

The post Ethereum Catches Up, But Market Still Cautious on Allocation appeared first on Coindoo.

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Filed under: Bitcoin - @ May 19, 2025 4:00 am