David Duong, head of research at Coinbase Institutional, noted that while recent Ethereum (ETH) gatherings are based on technical factors, investors’ desire for capital allocation is still limited.
“The rise of ETH last week was primarily due to technical reasons, which was linked to an overabundance of incongruent positions, a short closure and a reopening of positions.
Duon said this recovery in ETH prices does not imply a general appetite for capital allocation in the market. “This price movement doesn’t mean that the market is willing to allocate ETH on a large scale. Demand is still limited.”
Meanwhile, Duong also drew a positive photo in his comments about Bitcoin (BTC). “BTC is on the rise and its advantage could increase.” Regarding the macroeconomic outlook, Duon said softening of US-China trade relations has increased investors’ sentiment last week. In particular, Duon said the US $600 billion trade deal with Saudi Arabia has strengthened this optimism, pushing back expectations for the US recession this year.
But despite previous statements calling for a trade contract by June, the country’s Senate elections in July are likely to strengthen Tokyo’s stance, Duon said things are more complicated on the part of Japan.
*This is not investment advice.