News

Odaily Planet Daily News: Trader Eugene posted in his community, stating, "I am betting that the market will break out this week, and after careful consideration, my main target is ETH. Although I swore off touching it at the end of 2024 and the beginning of 2025, I now realize that ETH's position structure and market tailwinds have changed significantly.Here is a summary of my main reasoning:1. Structurally, positions are extremely light: In April 2025, ETH suffered a major market blow, dropping from $4,000 to $1,300, and the ETH/BTC ratio also hit a multi-year low of 0.018. This plunge was accompanied by a capitulation-style sell-off from traders and early whales. Since then, the way ETH is traded has been noticeably different from the past two years. Nowadays, aside from developers, almost no one treats ETH as a core holding, and most traders even refuse to touch it. As a result, from a high time frame (HTF) structural perspective, ETH's current position lightness is at its lowest in nearly three years.2. ETH will become the main chain for stablecoins and infrastructure bets by institutions and traditional finance: Although this view has been mentioned frequently recently and I was initially skeptical, if we objectively consider the recent regulatory progress actively promoted in the US, it is not hard to predict that institutions will eventually look for new allocation directions beyond BTC. ETH currently hosts over 90% of stablecoins, and this dominance is likely to continue. Given the higher risks faced by other L1s, there is almost no commercial reason to switch tracks. In addition, traditional finance representatives like Tom Lee have started to express recognition of ETH, and with the US stablecoin bill passing, ETH is gradually gaining institutional support from a "legitimate and compliant" perspective.3. ETH has significant room for price catch-up: While this point alone may not be decisive, once market momentum kicks in, ETH's "lag" relative to BTC can easily become a talking point. Traditional finance buyers are often "information laggards," which means the narrative of "it's not too late to buy ETH now" could become popular. If ETH returns to its historical high (which would require an 85% increase), the ETH/BTC ratio would only return to the 0.044 level of September 2024. Even if ETH/BTC does not rise, as long as BTC breaks through $110,000, the bull market is likely to restart, and during such periods, ETH typically does not underperform. ETH's weak phases usually occur when BTC is consolidating or declining.After thorough consideration, I firmly believe that from a medium-term structural perspective, ETH is a clear bet, and I have already built my position accordingly."