Yi Lihua's Conviction: Doubling Down on ETH Into 2026 as Derivatives Positioning Hits Critical Levels

Liquid Capital founder Yi Lihua recently outlined an aggressive accumulation strategy anchored on Ethereum, signaling persistent conviction in a major uptrend cycle. The thesis rests on three interconnected pillars: macroeconomic positioning, on-chain mechanics, and 2026 catalysts.

The Long-Term Macro Setup

Following the market correction when ETH touched the $3,000 mark, Yi Lihua’s team committed to sustained accumulation through dollar-cost averaging. The strategy isn’t predicated on timing the absolute bottom, but rather on a multi-year conviction that 2026—particularly Q1—will mark the inflection point for a major bull cycle. Short-term volatility of a few hundred dollars is dismissed as noise within this longer-term framework.

Derivatives as a Price Pressure Indicator

A critical yet overlooked market dynamic is the explosion in ETH perpetual futures positioning. On numerous platforms, open interest in ETH contracts now dwarfs the available spot supply by several multiples. This concentration of leveraged longs creates structural fragility and has become the primary lever influencing price action. While mainstream commentary focuses on spot accumulation, the derivatives market represents an underappreciated variable that could amplify moves in either direction.

The 2026 Confluence of Tailwinds

The conviction intensifies when examining the convergent policy and adoption landscape. 2026 is shaping up as the year of on-chain finance proliferation, stablecoin integration, macroeconomic interest rate cuts, and broad-based cryptocurrency regulatory clarity. This multi-factor alignment—unprecedented in scope—provides structural support for risk assets.

Portfolio Composition and Risk Management

Within this framework, Yi Lihua’s allocation reflects tiered conviction: ETH holds the largest position, signaling primary exposure to Ethereum’s ecosystem expansion. WLFI receives heavy allocation, suggesting bets on emerging finance infrastructure. BTC, BNB, and BCH comprise secondary positions, maintaining portfolio diversification while maintaining the ETH-centric thesis.

The messaging is clear: rather than waiting for confirmation of the bull market’s arrival, conviction-based accumulation has already begun. With Ethereum trading around $3,230 and structural tailwinds approaching alignment, the wager is that early buyers will be positioned ahead of the next major cycle.