Why now is not the time to buy Ethereum: preparing for $500?
Despite the hype around ETFs and the expected growth of the alt season, I believe that buying ETH in the current range is dangerous and premature. Here are some key reasons why Ethereum could go even lower — possibly even to the $500–700 zone:
🛑1. Weak fundamentals
Activity in the Ethereum network has declined: transaction volume, number of active addresses, and gas fees — all at a minimum.
Many DeFi projects are either stagnating or migrating to cheaper Layer 2 solutions or entirely different blockchains (Arbitrum, Solana, Base).
🛑2. Lack of a real growth trigger
ETH has no clear date or news that could act as a growth driver. The ETF is not yet approved, and even if it is — it is likely already partially priced in.
Compared to Bitcoin, Ethereum looks weaker both technically and emotionally (more panic selling during drops).
🛑3. Possible capitulation of altcoins
If Bitcoin goes into a deep correction (for example, to the $45-50K zone), Ethereum could very well fall into the $600–700 zone, and in the case of a recession — even to $500.
🛑4. Technical picture
There is no clear support above $1400.
The $800–500 zone contains global buying zones from 2020-2022 that have yet to be retested.
The current growth from $1000 to $4000 looks like a weak bounce within a large bearish pattern.
🛑Conclusion:
Ethereum is not 'dead', but buying at the highs when the network is essentially 'asleep' is like catching a falling knife. Especially considering the global risk of a market correction.
