Ethereum may finally be bullish, but according to cryptocurrency analyst Altcoin Sherpa, traders should think carefully before entering the market right now. In a recent post on X, the trader shared a candid view on Ethereum's current appeal in the market — or the lack thereof.
"$ETH will eventually be bullish, but the honest question is why you would buy it?" Sherpa asked. "The only reasons I can think of are: large scale/liquidity and more protected downside risk."
The technical chart you shared shows that ETH/USD is trying to recover after a strong downtrend, trading near $1,845 on Coinbase. While Ethereum seems to have found some stability, it is still well below the 2025 high of $3,500.
Stability compared to Opportunity
Sherpa acknowledges that Ethereum benefits from lower volatility compared to altcoins, noting that it is unlikely to drop 20% in a single day. This makes it a safer bet for large institutions or risk-averse investors.
However, he argues that the lack of bullish momentum makes it less attractive to retail traders who are hunting for alpha in a market filled with rapidly fluctuating tokens.
"In my opinion, most traders should not buy this stock," he added. "You should look for better opportunities."
Current setup of ETH
The chart shows a prolonged decline since the beginning of February, followed by a consolidation phase starting from mid-April. Although ETH is making higher lows, the bullish momentum is still weak and the volume remains low compared to previous rallies.
Sherpa's comments reflect the common viewpoint of traders looking for more explosive setups in mid and small-cap coins, while Ethereum's role seems to be increasingly limited to defensive positioning and capital preservation.
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Ethereum may be stable, but it is not the best opportunity currently.
Ethereum may finally be bullish, but according to cryptocurrency analyst Altcoin Sherpa, traders should think carefully before entering the market right now. In a recent post on X, the trader shared a candid view on Ethereum's current appeal in the market — or the lack thereof.
"$ETH will eventually be bullish, but the honest question is why you would buy it?" Sherpa asked. "The only reasons I can think of are: large scale/liquidity and more protected downside risk." The technical chart you shared shows that ETH/USD is trying to recover after a strong downtrend, trading near $1,845 on Coinbase. While Ethereum seems to have found some stability, it is still well below the 2025 high of $3,500. Stability compared to Opportunity Sherpa acknowledges that Ethereum benefits from lower volatility compared to altcoins, noting that it is unlikely to drop 20% in a single day. This makes it a safer bet for large institutions or risk-averse investors. However, he argues that the lack of bullish momentum makes it less attractive to retail traders who are hunting for alpha in a market filled with rapidly fluctuating tokens. "In my opinion, most traders should not buy this stock," he added. "You should look for better opportunities." Current setup of ETH The chart shows a prolonged decline since the beginning of February, followed by a consolidation phase starting from mid-April. Although ETH is making higher lows, the bullish momentum is still weak and the volume remains low compared to previous rallies. Sherpa's comments reflect the common viewpoint of traders looking for more explosive setups in mid and small-cap coins, while Ethereum's role seems to be increasingly limited to defensive positioning and capital preservation.