Ethereum Updates: Yi Lihua's Careful Buying Strategy Stands Out Amid Ethereum's Sharp Downturn

Yi Lihua, who established Liquid Capital, has taken on the role of a strategic Ethereum accumulator,

, focusing on acquiring the asset in the spot market within the $3,000 to $3,300 price band and advising against using leverage until the market becomes more stable. In a recent post on X, he detailed his method, which demonstrates a sophisticated grasp of Ethereum’s price swings, influenced by global economic trends like interest rate changes in Japan and the United States, the AI-fueled speculative surge, and overall U.S. economic conditions . Yi’s tactics mirror his previous trading behavior, having bought Ethereum at $1,800 and $1,450 and selling at $4,500, highlighting his preference for a patient, low-risk accumulation strategy.

Despite this, Ethereum currently faces significant headwinds. Recent statistics show that

, representing a four-month low as investors shy away from riskier assets. At the same time, , with the leverage ratio for Ethereum climbing to 0.5617 and exchange reserves increasing by 4.65% to $47.59 billion, pointing to a more cautious market mood. Experts attribute this to excessive leverage, negative technical signals, and a wave of long position liquidations, all of which could push the price below the $3,000 mark .

Wider economic challenges add further complexity. The Federal Reserve’s hawkish stance has dampened hopes for an early rate cut in 2026, with U.S. 10-year Treasury yields hovering near 4.08% and the Dollar Index holding at multi-week highs. This environment has led institutional investors to favor Treasury-linked returns over crypto risk,

to $3,080. The total value of the crypto market has dropped below $2.38 trillion, the lowest since mid-September, as speculative capital exits and enthusiasm for U.S. spot Ethereum ETF approvals fades.

Yi’s avoidance of leverage stands in stark contrast to the current fragile market environment.

in long positions, compared to only $2.85 million in shorts, revealing a structural vulnerability among bullish traders. Technical signals for Ethereum, such as a strong -DI reading of 28 and an ADX of 42, support a bearish trend, as support levels are repeatedly tested. Nevertheless, Yi’s focus on spot accumulation rather than leveraged trades allows him to benefit from any future recovery while avoiding the risks of margin trading.

The broader significance of Yi’s method is its consistency with Ethereum’s underlying strength.

at 1.05 million, and gas fees have risen to $4.80, indicating ongoing demand for DeFi and NFT activities. Still, Ethereum’s short-term direction is unclear, with key support at $3,000 and $2,870 being closely watched. If these levels are breached, the asset could see a deeper correction before any substantial rebound occurs.