Ethereum News: Matrixport Warns Ethereum Buying Power Is Weakening as Risk Management Needs Rise
Key Points:Matrixport says Ethereum’s long positions recently offered strong risk-return advantages.Technical indicators are flashing caution as the weekly stochastic reverses from extreme highs.The Ethereum Treasury’s shrinking net assets may limit its ability to continue aggressive buying.Matrixport has cautioned that Ethereum’s (ETH) buying momentum is weakening, even as the token has delivered superior risk-adjusted returns in recent months.In its latest market note, the crypto financial services firm highlighted that while ETH long positions have enjoyed favorable risk-return profiles, technical indicators are beginning to lose effectiveness in a rapidly rising market.Specifically, the weekly stochastic indicator has reached extreme highs and reversed downward — a signal that has historically coincided with investor caution and profit-taking.At the same time, the Ethereum Treasury — a major buyer of ETH in recent months — faces shrinking net assets, which could limit its ability to inject additional funds into the market.Matrixport emphasized that in such conditions, strict risk management becomes critical to protect gains and manage downside exposure.