Trader Eugene has revealed a renewed bullish stance on Ethereum (ETH), announcing that he has re-entered a long position based on what he describes as a major structural and sentiment shift. Posting in his trading community, Eugene expressed confidence that the market is poised for a breakout this week, with ETH being the most compelling opportunity.
Key Reasons Behind His ETH Long Thesis:
Extremely Light ETH Positioning After 2025 Capitulation
Following ETH’s dramatic drop from $4,000 to $1,300 in April 2025—and the ETH/BTC ratio plunging to a multi-year low of 0.018—Eugene notes that ETH was heavily sold off by traders and whales alike.
He now sees a rare opportunity: “The current lightness of ETH's positioning is at a three-year low,” he wrote, highlighting the structural upside if sentiment shifts.
ETH’s Role as Institutional Infrastructure
Eugene points to growing signs of ETH becoming the preferred chain for stablecoin activity and regulated finance.
With 90%+ of stablecoins on Ethereum and growing U.S. regulatory clarity—such as the Stablecoin Act in progress—he believes institutions will increasingly turn to ETH as a legal, compliant blockchain infrastructure layer.
Recognition from Wall Street voices like Tom Lee adds weight to ETH’s case as a tradfi-aligned crypto asset.
Catch-Up Potential vs BTC
While not the core driver, Eugene suggests that ETH's underperformance versus BTC could soon reverse.
“ETH returning to its ATH implies an 85% rally, and even then ETH/BTC would only reach 0.044—levels seen back in September 2024,” he said.
If BTC breaks $110K, Eugene expects ETH to surge as part of a full bull market restart, with historical data showing ETH typically outperforms during upward momentum phases.
Despite previously avoiding ETH after its brutal Q2 drawdown, Eugene believes the risk-reward profile has shifted dramatically:
“ETH is the clearest bet from a medium-term structural perspective,” he concluded.
As Ethereum continues to consolidate near $2,600, traders will be watching closely to see whether Eugene’s breakout thesis plays out in the days ahead.
