Ethereum Might Crash To $700 Before Next Bull Run, Says Analyst With A Very Shaky Crystal Ball

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After spending a very tense few minutes hovering perilously close to the $1,500 support level like a drunk pigeon teetering on a rainy windowsill, Ethereum has managed to haul itself back up a little. Don’t get too excited, though. The broader crypto market is still very much in the mood of a man who just remembered he left the oven on, only to realize the oven is his entire life savings.

In fact, things could still get considerably worse for ETH, because an important on-chain metric that nobody actually asked for is currently gearing up to go stomp around in parts of the chart that haven’t seen this kind of action since the last time everyone panicked and tried to trade their monkey jpegs for canned beans and a good pair of socks.

Bottom Signal

Crypto analyst Ali Martinez, a man who has clearly watched enough market crashes to know the difference between a temporary dip and the end of the world as we know it, says Ethereum’s Delta Price metric – a contraption dreamed up by the number wizards at Alphractal – has successfully identified the last two major ETH market bottoms. The indicator is currently parked near $700, and for those of you who don’t speak fluent crypto bro, it measures the gap between what regular schmucks paid for their ETH and how much it costs miners to pull the digital coins out of the thin air they live in.

According to Martinez, if past market patterns repeat themselves – which they almost never do, but crypto analysts act like they’re written in stone, like predicting the weather by looking at how wet the sidewalk was last Tuesday – Ethereum risks plummeting back to the $700 range before it remembers it’s supposed to go up again and buy everyone a new graphics card.

Despite the fact that sentiment around Ethereum is currently so negative you could power a small village with the collective grumpiness, the network’s growth has continued to barrel along like a runaway shopping cart full of lime Jell-O. Data shared by Santiment (the folks who watch crypto activity like a hawk watches a particularly slow vole) revealed that the blockchain now has nearly 195 million non-empty wallets – that’s around 230% more than Bitcoin’s paltry 59 million wallets, for those of you keeping score at home. The gap between the two networks has been steadily widening across multiple market cycles, even as the crowd sentiment has fallen into “extreme fear” territory, which is crypto speak for “everyone is currently hiding under their bed eating chocolate and swearing they’ll never touch crypto again.” Ethereum is now only about 5 million wallets away from hitting the 200 million milestone, which is presumably when it gets a tiny party hat and a lollipop to celebrate.

Santiment reckons most of this growth is down to Ethereum’s stranglehold on DeFi, staking, and general on-chain chaos, where users actually do stuff with the network instead of just hoarding tokens like a dragon hoards gold, except the gold is digital and you can’t melt it down to make a nice chalice.

ETH Open Interest On Binance

Meanwhile, the derivatives market around Ethereum has started showing signs of waking up from its post-crash nap. While ETH recently wandered into deeply oversold territory – which is crypto speak for “it’s so cheap even your nan who thinks the internet is a passing fad is considering buying a tiny bit” – some traders have seen this as a great opportunity to throw more lunch money at it via futures markets. CryptoQuant, the other group of number nerds who watch this stuff, spotted that Binance recently hit a new all-time high for Ethereum open interest measured in ETH terms, with nearly 3.7 million ETH currently tied up in futures contracts on the exchange. That works out to more than 44% of all Ethereum open interest, which means Binance is basically the crypto equivalent of the pub everyone goes to after work to complain about their bosses and their aching joints. Also, Binance’s weekly average Taker Buy/Sell Ratio climbed from 0.95 to 1.0, which is fancy talk for the fact that traders are finally starting to buy more than they’re selling, after months of everyone panic dumping like the building’s on fire and the only exit is blocked by a pile of useless NFTs.

[Footnote 1: This is not financial advice. Or any kind of advice, really. Unless you want advice on how to hide from your landlord when your crypto portfolio crashes, in which case I’m your guy. No takebacks.]

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2026-06-11 16:36