The Narrative Collapsed and Ethereum Is Cheap. Is ETH finally a buy?
The Ethereum options market is seeing unusually large put buying activity, with the $1,800 and $1,900 strikes attracting flows running approximately five times above normal levels.
Since issuing our high-conviction short on May 16, 2026, Ethereum has declined 10%. But our bearish thesis predates that call.
On October 31, 2025, with ETH trading at $3,800, we identified Ethereum as the smarter hedge.
Prices have since fallen 47% (see also our interview from November). The thesis was always fundamental.
The market is simply catching up.
In early April 2026, with Ethereum trading near $2,000, we revisited our fundamental view, examining whether the conditions for a buy had emerged and what the real structural issues were.
Today, we return to that question. Ethereum is cheap.
But cheap is not the same as a buying opportunity.
Fundamentals ultimately determine price; marketing narratives can only sustain a divergence for so long before reality reasserts itself.
We have seen that cycle play out once already.
So what has changed? Let us approach Ethereum from a different angle entirely. See our full report below.
China’s mutual fund assets climbed above 39 trillion yuan for the first time at the end of April, as a rebound in domestic equities lifted fund valuations following a volatile first quarter.
The structure of the market is experiencing a historic shift:
The number of US-listed ETFs is up to ~4,900, an all-time high, up +95% since 2020.
Over the same period, the number of US publicly listed companies has declined -1,000, or -20%, to ~3,900, the lowest this century.
As a result, there are now ~1,000 more ETFs than stocks to trade in the US market, the widest gap in history.
Meanwhile, US ETF assets under management (AUM) jumped +10% in April, to a record $14.9 trillion.
Over the last 4 years, US ETF AUM has surged +140% and now accounts for ~69% of the global ETF market.
ETFs are reshaping the foundation of financial markets.
In April, we dropped @GeminiApp for macOS, building over 100 features in less than 100 days. Now more are coming, including Gemini Spark and powerful voice understanding technology. @JoshWoodward showcases some of the new features at #GoogleIO# ⬇️
On April 23, 2026, the Knicks suffered a loss in Atlanta.
What happened next?
They won 11 straight (5th team in NBA history to do so in a single postseason), own the best point differential over an 11-game stretch (regular season or playoffs, +262), and haven't lost in over a month 🤯
Profits of China's major industrial firms increased 18.2 percent year on year during the January-April period, surpassing a rise of 15.5 percent in the first quarter, official data showed Wednesday. #DataTellsChina# #ChinaEconomy#
#CEIndex# Profits of China's major industrial firms increased 18.2 percent year on year during the January-April period, surpassing a rise of 15.5 percent in the first quarter, official data showed Wednesday.
China’s #industrial# profits surged 24.7% in April, the fastest growth in over two years. Despite economic headwinds, the industrial sector is showing serious resilience.
Xinhua: "Profits of China's major industrial firms increased 18.2% year on year during the January-April period, surpassing a rise of 15.5% in the first quarter."
Total profits are low but rising rapidly, balancing the lagging growth in wages.