Ethereum may eventually rise, 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 rise, but the honest question is why would you buy it?" Sherpa asked. "The only reasons I can think of are: large scale/liquidity and more protected downside risk."
The technical chart he shared shows ETH/USD attempting to recover from a strong downtrend, trading near $1,845 on Coinbase. While Ethereum seems to have found some stability, it remains well below the 2025 high of $3,500.
Stability vs Opportunity
Sherpa acknowledges that Ethereum benefits from lower volatility compared to altcoins, noting that it is unlikely to drop 20% in a 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 hunting for alpha in a market rife with rapidly fluctuating tokens.
"In my opinion, most traders shouldn't buy this stock," he added. "You should be looking for better opportunities."
Current Setup of ETH
The chart shows a prolonged downtrend since early February, followed by a consolidation phase from mid-April onwards. Although ETH is making higher lows, the upward momentum remains weak and volume is low compared to previous rallies.
Sherpa's comments reflect the general sentiment among traders seeking more explosive setups in mid and small-cap coins, while Ethereum's role seems increasingly confined to a defensive position and capital preservation.
