Ethereum’s struggles against Bitcoin are once again in the spotlight as new claims surface suggesting that a wave of South Korean retail investment is playing a key role in keeping the asset afloat.
Industry veteran Samson Mow asserted that nearly $6 billion in Korean retail funds are now tied up in so-called “Ethereum treasuries” – firms stockpiling ETH in a strategy modeled after MicroStrategy’s Bitcoin playbook. Mow alleged that local investors, lured by promotional campaigns and influencer tours, are treating these companies as the next big corporate accumulation story, despite weak fundamentals.
ETH continues to lag
Ethereum has dropped nearly 2% in 24 hours and around 5% against Bitcoin over the past month, according to CoinMarketCap. Despite steady inflows and narrative hype, ETH has remained well below its record high near $4,950, and the ETH/BTC ratio continues to slide.
Mow described the current support as “retail-driven rather than institutional,” warning that misplaced enthusiasm could eventually trigger a painful correction. Data from the Strategic ETH Reserve backs the scale of these holdings – about 67 firms collectively control 5.49 million ETH, or roughly 4.5% of total supply, led by entities such as BitMine and SharpLink.
Critics weigh in
Mechanism Capital’s Andrew Kang echoed Mow’s skepticism, arguing that most Ethereum treasury models lack the financial rigor seen in Bitcoin-focused firms. He described ETH’s technical setup as “bearish,” suggesting it may remain range-bound between $1,000 and $4,800 without a catalyst for institutional demand. Kang went further, comparing the hype cycle to XRP’s speculative surges, claiming Ethereum’s valuation is increasingly sustained by “financial illiteracy rather than fundamental strength.”
For now, Ethereum’s narrative remains powerful enough to attract retail inflows, particularly in Asia. But analysts caution that if Bitcoin continues to outperform, the so-called “ETH treasury trade” could become a warning sign – not a bullish case – for the market’s second-largest cryptocurrency.
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Source: https://coindoo.com/heres-whats-really-driving-ethereums-market-according-to-analysts/