To The Moon

Ethereum (ETH) recently surged past $4,700, climbing over 8% in 24 hours and now trading around $4,733—just 1.4% below its all-time high. This rally has been fueled by institutional accumulation and corporate treasury strategies, with Ethereum-focused entities like $BitMine Immersion Technologies Inc.(BMNR)$ and $SharpLink Gaming(SBET)$ significantly increasing their holdings. As ETH continues to outperform Bitcoin and attract capital, Ethereum-linked crypto platform stocks have seen a correlated uptick.

Will the Rally Continue?

Several factors suggest the rally could persist:

Institutional Demand: Ethereum treasuries now hold over $16.4 billion in ETH, reflecting growing confidence.

Technical Momentum: Analysts point to a breakout target of $4,800, with strong support levels and bullish indicators like MACD and RSI.

Market Sentiment: Retail skepticism is allowing whales to accumulate, a contrarian signal that often precedes further gains.

However, Ethereum faces challenges:

Declining Network Fees: Ethereum’s base layer fees have dropped, and competitors like Solana and Tron are gaining traction.

TVL Decline: Total value locked on Ethereum has decreased by 7% over the past month, hinting at reduced on-chain activity.

So while the short-term outlook is bullish, medium-term sustainability depends on Ethereum’s ability to maintain network dominance and attract continued institutional interest.

Is the Barbell Strategy Suitable Now?

Especially in this volatile, momentum-driven environment, this strategy is much suitable and appropriate.

As coined by Nassim Taleb, the barbell strategy involves:

• Heavy allocation to low-risk assets (e.g., Bitcoin, Ethereum, stablecoins)

• Small allocation to high-risk assets (e.g., meme coins, emerging altcoins)

• Avoiding medium-risk assets, which often have poor risk-reward profiles

Why it works in Crypto

• Antifragility: It thrives in volatile markets by protecting capital while capturing upside from speculative plays.

• Risk Management: You limit downside by concentrating risk in a small portion of your portfolio.

• Liquidity Advantage: Keeping 20% in stablecoins allows you to pounce on opportunities when they arise.

Example Allocation

This setup lets you benefit from ETH’s rally while staying protected if the market turns.

Final Thought

If ETH continues its upward trajectory, Ethereum-focused stocks and high-risk altcoins may ride the wave. A barbell strategy offers a smart way to participate in the rally without overexposing yourself to speculative risk. Want help building a sample crypto barbell portfolio tailored to your risk appetite?

In this article we have tailor a crypto barbell portfolio to our risk appetite. Here we will start by outlining three risk profiles, namely Conservative, Balance and Aggressive.

Then we will proceed to build a sample portfolio for each profiles. I will be sharing which one I think suits my current investing appetite.

Risk Profiles & Sample Barbell Portfolios

Conservative (Preserve capital, modest growth)

Goal: Minimize downside, participate in ETH/BTC upside This is how we can allocation for this portfolio.

Notes: Focuses on Ethereum and Bitcoin, with a small exposure to Layer 2 and DeFi infrastructure.

Balanced (Growth with risk control)

Goal: Capture ETH rally, explore emerging trends

Notes: Includes Solana and Optimism for Layer 1/2 exposure, plus a small memecoin allocation for speculative upside.

Aggressive (High upside, high volatility)

Goal: Maximize gains from ETH rally and altcoin momentum

Notes: Heavy exposure to memecoins and emerging DeFi tokens. Volatile but potentially rewarding.

In the next section, I will be sharing why I choose the Balanced profile, because it is ideal for capturing upside from Ethereum's rally while keeping risk in check. Since I will be leaning toward short-term trading for crypto now while holding Bitcoin and Ethereum long-term in my cold wallet.

I will be sharing how we will be tweaking the portfolio to emphasize momentum-drive assets, liquidity, and flexibility for fast rotations.

Refined Balanced Barbell Portfolio (Short-Term Focus)

Allocation Breakdown

Asset Rationale

• ETH: Leading the current rally; strong institutional interest and technical breakout potential.

• BTC: Defensive hedge; less volatile than altcoins.

• SOL: Benefiting from NFT and DePIN narratives; strong ecosystem.

• OP: Layer 2 scaling solution; correlated with ETH performance.

• RUNE (Thorchain): Cross-chain DeFi play; gaining traction.

• PEPE: Speculative memecoin; high volatility, short-term pump potential.

• JUP (Jupiter): Solana-based DEX aggregator; active trader interest.

In this section, I will be sharing some short-term trading tips.

• Set Entry Triggers: Use technical indicators like RSI < 40 or MACD crossovers to time entries.

• Use Stop-Losses: Protect capital—especially on high-risk assets. Consider 10–15% trailing stops.

• Monitor ETH/BTC Ratio: If ETH continues to outperform BTC, altcoins may follow.

• Rotate Quickly: If an asset pumps 30–50%, consider taking partial profits and rotating into laggards.

Suggested Holding Periods

Final Notes

While we are seeing Ethereum rally driven by fund inflow to this asset, there are still some concerns on the U.S. budget deficit which could cause U.S. inflation number to go higher.

This is also the reason why I choose to do the barbell strategy short-term.

One thing to note here, is the suggested holding periods, this may differ from each different investors and traders, I am doing a shorter time horizon for these stablecoins.

Summary

A barbell strategy for crypto investing combines two extremes: a high-risk, high-reward component and a low-risk, stable component, while avoiding medium-risk assets. With Ethereum (ETH) rallying towards its all-time high, it serves as the stable, low-risk anchor in this strategy. Its large market cap and institutional adoption provide a relative degree of safety.

On the other end of the barbell, Solana (SOL) represents the high-risk, high-reward component. While it is a major cryptocurrency, it has a smaller market capitalization and is known for its high volatility and potential for explosive growth. The recent rally in ETH often pulls the broader altcoin market, including SOL, upward. This correlation makes a barbell strategy feasible, allowing investors to capitalize on ETH's stability and rally, while using SOL to capture potentially outsized returns. This approach balances a secure foundation with aggressive growth potential.

Appreciate if you could share your thoughts in the comment section whether you think barbell strategy for Ethereum and Solana would be feasible as we are seeing Ethereum rallying.

@TigerStars @Daily_Discussion @Tiger_Earnings @TigerWire @MillionaireTiger appreciate if you could feature this article so that fellow tiger would benefit from my investing and trading thoughts.

Disclaimer: The analysis and result presented does not recommend or suggest any investing in the said stock. This is purely for Analysis.