A recent analysis by trader Sherpa raises questions about Ethereum's current market appeal.
Ethereum's Market Condition
Trader Sherpa shared his thoughts on the fact that while Ethereum (ETH) has the potential for growth, its current situation raises questions. "$ETH will eventually go up, but the honest question is: why would you buy it?" he asks. Currently, ETH is trading around $1,845 on Coinbase, significantly lower than its peak of $3,500 reached in 2025.
Comparison with Altcoins and Volatility
Sherpa asserts that Ethereum exhibits lower volatility compared to altcoins, making it a safer choice for large institutional investors or those preferring less risky assets. However, the relative lack of upward momentum makes it less appealing for retail traders hunting for better opportunities in a market filled with fast-moving tokens. "Most traders shouldn't buy this IMO," he added.
Current ETH Setup and Trader Opinions
The prolonged decline of ETH that began in February has been accompanied by a consolidation phase since April. Despite ETH printing higher lows, upward momentum remains subdued, and trading volume is low compared to earlier surges. Trader sentiments emphasize the importance of seeking more explosive opportunities, as Ethereum appears to be increasingly viewed as a defensive asset.
In conclusion, the current analysis of Ethereum highlights its role as a less risky asset in a low volatility environment, while demand for more active opportunities from traders may diminish interest in ETH.
