Key Takeaways

• Wintermute said Ethereum is ‘the wrong asset for this macro.’

• It comes shortly after Tom Lee linked Ethereum’s weakness to rising oil prices.

• Despite near-term pressure and ETF outflows, Wintermute said long-term crypto fundamentals remain intact.

Ethereum’s underperformance in the current macro environment has sparked debate among crypto market participants, with trading firm Wintermute arguing it is ‘the wrong asset for this macro.’

The comments come just a week after Ethereum bull Tom Lee linked the crypto’s current weakness to surging oil prices.

Wintermute Calls Out Ethereum

In a weekly market note, Wintermute noted ETH had fallen 10.2% over the past week, underperforming Bitcoin across both spot and derivatives markets.

The firm pointed to a broad repricing across global markets after April US consumer price inflation came in hotter than expected at 3.8% year-on-year.

Meanwhile, the benchmark 10-year Treasury yield climbed to 4.58%, its highest level since September 2025.

Wintermute said the shift in macro expectations, including markets beginning to price in a possible Federal Reserve rate hike later this year, had weighed particularly heavily on Ethereum.

This is likely due to its stronger sensitivity to liquidity conditions and long-duration growth narratives, the firm said.

Tom Lee Also Linked Ethereum Weakness To Rising Oil Prices

The comments come a week after Fundstrat’s Tom Lee linked Ethereum’s recent weakness to surging oil prices, arguing the crypto’s inverse correlation with crude had reached historic levels.

“If one is wondering why Ethereum $ETH has been under selling pressure: to me, rising oil prices is the biggest headwind,” Lee wrote on X on May 18.

Adding: “ETH inverse correlation to oil is the highest ever.”

Lee added in a follow-up post that “as oil rose in the past six weeks, ETH prices have fallen.”

The famed analyst described the relationship as a short-term tactical headwind, but claimed he remained bullish on Ethereum’s long-term outlook.

As usual, Lee cited tokenization and artificial intelligence as key structural growth drivers that would strengthen demand for the blockchain through 2026.

Lee Says Ethereum’s Recovery Signals End Of ‘Crypto Winter’

Lee’s latest remarks came only days after he argued that the crypto market had already emerged from its prolonged downturn.

“Crypto Spring has commenced,” Lee said in a monthly chairman’s message.

He pointed to Ethereum’s recent price action as evidence that broader bear-market conditions in crypto may already be fading.

“There’s never been a crypto winter where Ethereum has closed up three consecutive months in a row,” Lee said.