Analyst Warns Ethereum Could Drop to $700 Before Next Bull Run

Ethereum is showing signs of recovery after rebounding from the $1,500 area. The asset recently climbed to around $1,673, up 3.6% over the past 24 hours. But some market analysts believe the asset has not reached its final cycle bottom. Despite improving sentiment, several on-chain indicators continue to signal potential downside risk before the next major bullish phase begins.

Delta Price Points to $700

Crypto analyst Ali Martinez recently focused on Ethereum’s Delta Price metric. This on-chain indicator, developed by Alphractal, compares investor cost basis with miner production costs. According to Martinez, the metric successfully identified the last two major ETH market bottoms. The indicator is currently positioned near the $700 level. Martinez describes this as a historically significant accumulation zone.

If previous market patterns repeat, Ethereum could revisit that area before establishing its next long-term uptrend. That would represent a substantial correction from current prices. But many long-term crypto investors view deep pullbacks as opportunities to accumulate assets at discounted valuations. Previous market cycles also saw Ethereum experience major drawdowns before recovering and reaching new record highs.

Network Growth Remains Strong

Despite recent price weakness, Ethereum’s underlying network continues to expand at a notable pace. Data from Santiment shows that the blockchain now hosts nearly 195 million non-empty wallets. That is significantly more than Bitcoin’s approximately 59 million. According to the analytics firm, Ethereum is less than 5 million wallets away from reaching the 200 million milestone.

The network’s growth continues to be supported by its leadership across decentralized finance, staking, tokenization, and broader on-chain activity. Meanwhile, Ethereum derivatives activity is also showing signs of recovery. Data from CryptoQuant revealed that Binance recently recorded a new all-time high of nearly 3.7 million ETH in open interest. This highlights increased participation from futures traders.

At the time of writing, ETH trades around $1,673. The recovery has helped stabilize short-term sentiment, although the asset remains far below its previous cycle highs. Whether Ethereum revisits the $700 level depends on broader market conditions and whether historical patterns hold. But for now, the Delta Price metric offers a cautious perspective on what might come next.

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