Ethereum’s recent price jump may have caught traders’ attention, but according to Coinbase Institutional’s David Duong, the rally isn’t fueled by renewed market confidence.
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.
Alexander Stefanov
Reporter at Coindoo
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over 8 years of experience covering the crypto, blockchain and fintech industries, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics.
Source: https://coindoo.com/ethereum-catches-up-but-market-still-cautious-on-allocation/