Is Ethereum Falling Below $1,600 a Red Flag or a Green Signal to Buy?

Ethereum has plunged nearly 70% from its all-time high of $4,946 in August 2025 to below $1,600. While the author is bullish on Ethereum's long-term prospects due to its strong developer ecosystem and Layer 2 scaling solutions, he believes the sell-off isn't over due to macro headwinds, profit-taking into AI stocks and IPOs, and potential liquidations from companies holding Ethereum treasuries. He recommends only nibbling on Ethereum if you have a multi-year investment horizon.